BOSTON–Life sciences occupiers around the world are reassessing how real estate strategies can help them stay ahead of the competition by accessing the right talent, delivering product to market, supporting cost optimization and driving environmental sustainability, accordng to global real estate services firm Savills.
Boston and San Francisco rank first and second in the global index of the top 30 life science markets, with Houston and Atlanta emerging as hotspots, according to Savills.
In the U.S., life sciences venture capital funding is stabilizing and rising through year-end, with companies actively leveraging cash reserves for M&A deals to acquire innovative assets amid a surge in deal activity. See below for key takeaways from the Q3 Life Sciences Tenant Report recently released by Savills:
- Developers, faced with oversupply and weakening demand, are offloading their life sciences inventory, with some even marketing planned life sciences spaces as office space.
- VC Funding on the Rise – Although fewer deals have been completed in 2024, venture capital funding has risen by 20% compared to the same period last year, signaling that the deals made are more significant.
- Surge in Mergers & Acquisitions – M&A activity surged by 92.6% from Q3 2023 to Q3 2024 across the life sciences sector, with acquisitions occurring among both large pharmaceutical companies and startups.
