Life Sciences Vacancy Rate Declines for First Time Since 2022

Executive Summary

• The lab/R&D vacancy rate for the top 13 markets tracked by CBRE declined slightly to 23.0% in Q4, the first drop in vacant space since Q2 2022.
• A second consecutive quarter of positive net absorption was recorded in Q4 (156,233 sq. ft.), the first time since 2022 that net absorption was positive for two straight quarters.
• Venture capital funding for life sciences companies fell slightly quarter-over-quarter to $8.4 billion, but H2 2025 funding was the strongest half year of investment since 2022.
• Space under construction decreased to 4.5 million sq. ft., the lowest level since mid-2017, while construction completions fell drastically to 280,822 sq. ft. from 2.4 million in Q3.
• Average asking rent for lab/R&D space declined to $69.80 NNN per sq. ft., the fourth consecutive quarterly drop.
• Total life sciences employment growth remained sluggish, but that of Biotech R&D accelerated for a second consecutive month in November 2025.