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Life sciences property rents fall as vacancy rises in the U.S.

Cushman & Wakefield says vacancy climbed to 24.3 percent and the construction pipeline is down to 2 percent of inventory from a 17 percent peak in mid-2023.

Reported · Written up by our desk · Residential

The U.S. life sciences real estate market remains oversupplied even as conditions start to stabilize, according to Cushman & Wakefield, with asking rents slipping and vacancy rising during 2Q 2026.

As of the second quarter of 2026, asking rents averaged $64.17 per square foot, down 5.3 percent year over year, while vacancy increased by nearly 200 basis points to 24.3 percent.

Cushman & Wakefield expects rents to keep softening, especially in heavily supplied markets, but said stronger financing and occupier demand could help stabilize rates over the next 18 to 24 months.

The firm pointed to a sharply reduced development pipeline, with life sciences inventory expanding from 171 million square feet in 2021 to 239 million square feet today, while construction now represents only 2 percent of inventory, down from 17 percent at its mid-2023 peak. It also cited capital markets activity, including R&D investment sales totaling more than $9.3 billion over the four quarters ending in June, and deal count rising 9 percent to 292.

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