Life sciences is moving through a major transition, as early signs of recovery, rising valuations, renewed onshoring, and growing demand for specialized space, collide with elevated vacancies, high construction costs, and tighter financing, according to Colliers’ 2026 CRE Reset report.
Key takeaways include:
Venture capital activity is showing early signs of improvement: After valuations fell 30 percent to 40 percent below 2021 levels, rising valuations are beginning to reopen IPO pathways and could unlock more venture capital deployment in 2026.
Onshoring momentum is strengthening:Major pharma and biotech firms announced billions in U.S. investments in 2025, and strategic, economic, and policy factors such as tariffs, supply chain resilience, and national security are expected to drive further onshoring next year.
Supply gives tenants greater leverage: Double-digit vacancies result
