For the data behind the commentary, download the full Q4 2025 U.S. Life Sciences Report.
Q4 2025 Life Sciences Key Trends
- Demand firmed notably in the fourth quarter with net absorption turning positive for the first time in seven quarters. Net absorption totaled about 555,000 square feet (sf) in the fourth quarter, a significant improvement quarter-over-quarter (QOQ) and year-over-year (YOY). Full-year absorption ended the year in negative territory at -1.6 million square feet (msf), a significant improvement over 2024. Sustained momentum could return the sector to positive annual absorption in 2026.
- Overall asking rents eased further to $66.16 per square foot (psf), a 3.1% YOY decline. Overall vacancy rate continued to rise, climbing 316 basis points (bps) YOY to 23.5%. The sublease vacancy remained flat YOY at 3.5%.
- Construction activity continued to slow with 9.6 msf delivered in 2025, down 19% from 2024 completions. Build-to-suit (BTS) projects have accelerated and now comprise 57% of the pipeline, while speculative (spec) construction has dropped to 43% from 66% in 2024. With just over 8.4 msf currently under construction, this shift to BTS projects will help rebalance vacant supply.
- Capital markets activity reached $3.4 billion in Q4, up 51% from Q3 and up 36% YOY. Full-year 2025 sales volume totaled $9.8 billion, up 39% YOY. Renewed investor interest in life sciences points to increased activity in 2026. Pricing is relatively attractive, having softened 6.7% QOQ and down -4% YOY to $225 psf.
- Venture capital (VC) investment in life sciences totaled $8.1 billion in Q4, 7.3% lower than Q3 but 18% higher than Q4 2024. Despite a rebound in the second half, deal volume for the year was down 4.4% YOY. Improved VC sentiment entering 2026 indicates potential acceleration in funding activity.
For the data behind the commentary, download the full Q4 2025 U.S. Life Sciences Report.
