While Life Sciences Leasing Slumps, Evolving Investment Market Gears Up For Turnaround Structural shifts in who is investing in the life sciences sector — and how much they’re planning to pay — suggest a growing critical mass of backers is preparing to invest after seeing improvement in the larger U.S. financial picture. It offers a sign of confidence in the long-term success of biotech and lab real estate, even as the larger life sciences leasing picture remains challenging. Institutional actors and public investors are expanding their investments, and new entrants are increasingly using joint ventures as they get into the sector, according to a new CBRE report covering life sciences investment trends. Over the last decade, investment by institutional players in the so-called alternative assets sector has grown from 1% to 6%, now totaling $56.8B, with the largest single share of roughly 33% going to life sciences. Investment volume in research and development properties was 68% higher between 2020 and 2023 than it was between 2016 and 2019. Even with venture capital drying up, outside investments have maintained a steady flow.
“In primary markets, we believe that the life sciences niche is increasingly being viewed as a normalized asset class and, in some states, an important driver of their local and regional economy,” BGO Vice President of Life Science Development Nick Cassaro said in an email. “We expect that there will… Read the full story here. |