The U.S. life sciences real estate sector is transitioning into a more sustainable phase following several years of rapid expansion, according to Colliers’ 2026 Life Sciences Market Outlook.
The report finds that key indicators — including venture capital investment, construction activity and tenant demand — are stabilizing after peaking during the pandemic-era boom. While overall activity has moderated, continued development in leading markets points to long-term growth potential.
Venture capital funding totaled more than $33 billion over the past year, representing a 25 percent decline from the 2020-2022 average, when investment in the sector reached record highs. Funding also has become more selective, with earlier-stage firms facing slower fundraising activity in recent quarters.
At the same time, vacancy rates have increased in several major life sciences markets as speculative construction has outpaced current demand. In Boston, approximately
