The Most Active Life Sciences Markets in the US

The life sciences construction pipeline remains resilient, with 54.7 million square feet of new space initiated between 2019 and October 2024, CommercialEdge data shows.

Key life science clusters continue to thrive, even amid general economic challenges, because of their dependence on direct research and face-to-face collaboration.

“Unlike other industries where companies can operate remotely, life sciences rely heavily on hands-on research and in-person collaboration—lab work simply can’t happen over Zoom. This commitment to physical spaces has kept demand in established life sciences clusters,” Sonia Taneja, managing director for King Street Properties, told Commercial Property Executive.

While the life sciences construction pace has slowed in 2024, with only 2.2 million square feet breaking ground compared to 11.4 million square feet in 2023 and 16 million square feet in 2022, the sector has recorded substantial deliveries in previous years. Between the start of 2019 and October 2024, some 36.6 million square feet of lab space came online, including 10.5 million square feet in 2021 and 7 million square feet in 2020. This historical context underscores the robust foundation of the life sciences sector, which continues to support established clusters despite the general sluggishness.

“The life sciences real estate sector is at a crossroads, with challenges but also signs of recovery. Venture capital deployment is expected to increase as macro conditions improve. However, we should expect varied recovery timeline across different markets and submarkets,” said Maddie Holmes, senior research analyst at JLL.

Following the wave of new supply in 2024, Holmes added, “the new supply outlook improves significantly for 2025 and beyond. This respite in new supply will hopefully give the market some breathing space and the ability to absorb the current oversupply.”

Leveraging CommercialEdge data and expert insights, we delve into the dynamics driving these thriving markets, highlighting how their life sciences pipelines shape the broader landscape of U.S. commercial real estate.

Boston

Boston solidified its reputation as a leading life sciences hub, boasting a significant volume of construction activity that keeps it at the forefront of the industry.

Between 2019 and October 2024, developers broke ground on 16.8 million square feet of life sciences space across 60 properties, 5.7 percent of its existing inventory, CommercialEdge data shows.

The market’s strong life sciences development pipeline reflects ongoing demand, with over 680,000 square feet in construction starts in 2024 alone. In recent years, Boston has significantly expanded its pipeline, with developers breaking ground on 2.5 million square feet in 2023 and 6.7 million square feet in 2022.

From 2019 to October 2024, Boston saw the delivery of more than 10.5 million square feet of new lab inventory, including 2.8 million square feet in 2024, 2.1 million square feet in 2023 and 2.6 million square feet in 2022. This consistent development makes Boston an attractive option for life sciences companies seeking high-quality lab space, particularly as construction slowed in other markets.

Boston’s leadership in life sciences is bolstered by its exceptional talent pool and dynamic innovation ecosystem. World-class research institutions like Harvard and MIT attract top-tier professionals and encourage collaboration with cutting-edge research teams, making the city a natural choice for companies across the life sciences spectrum.

“Innovation tends to cluster around major research and educational institutions, which is why markets like Boston, San Francisco, San Diego and Raleigh-Durham continue to attract lab and bioscience companies,” Taneja noted.

San Francisco

San Francisco maintains its role as a top-tier life sciences market, driven by strong development and demand for lab and biotech space. Between 2019 and October 2024, life sciences construction starts totaled close to 9.1 million square feet across 37 properties, accounting for 4.8 percent of its total inventory. Recent development has seen steady groundbreakings, with 190,000 square feet started in 2024 and 2.5 million square feet in 2023 as well as in 2022.

CommercialEdge data highlights that lab space deliveries in San Francisco totaled 6.7 million square feet across 30 properties from 2019 to October 2024, accounting for 3.6 percent of total inventory. In 2024 alone, nine properties totaling 1.6 million square feet was completed, following deliveries amounting to 2 million square feet in 2023 and 2022.

A key factor in San Francisco’s growth is the ongoing shift toward high-quality, purpose-built lab spaces, Taneja elaborates. Companies are increasingly seeking facilities designed to meet the specific demands of life sciences operations, from structural reinforcements to specialized HVAC systems, rather than relying on converted office space. This trend, combined with anticipated growth in pharma research funding, suggests a favorable outlook for absorption in the metro.

San Diego

Third on our list with 5.7 million square feet of life sciences construction starts across 33 properties as of October—accounting for 5.1 percent of total inventory—San Diego is strengthening its position as a major hub in the life sciences sector.

The market has maintained a steady development pace, totaling 68,500 square feet in new lab space construction starts in 2024, following 1.7 million square feet across nine properties in 2023 and 400,000 square feet in 2022.

With life sciences deliveries totaling 3.6 million square feet between 2019 to October 2024—3.2 percent of the market’s inventory—San Diego continues to expand its offerings for biotech and life sciences tenants, with 2.1 million square feet completed in 2024, 310,000 square feet in 2023 and 343,000 square feet in 2022.

Its supply-to-demand ratio, measured by active tenant demand and total availability, stands at 4.0 percent, reflecting a tightening pipeline amid high interest from life sciences firms, JLL research shows.

Additionally, Los Angeles and Orange County are emerging as vital life sciences hubs, particularly in medtech, bolstered by robust healthcare networks and top research institutions. While these areas face supply constraints that limit immediate expansion, the high demand suggests strong potential for future growth.

Philadelphia

Philadelphia is emerging as a significant player in the sector, with 3.1 million square feet of lab space construction starts across 12 properties as of October, or 1.4 percent of existing inventory.

The market saw a strong year in lab space development in 2023, when 1.2 million square feet across three properties broke ground. According to CommercialEdge data, three properties totaling 900,000 square feet broke ground in 2022.

Life sciences deliveries totaled 1.1 million square feet across seven properties in the 2019-October 2024 interval, representing 0.5 percent of the market’s total inventory. Three projects totaling 750,000 square feet came online in 2023, while 2022 saw the completion of four assets totaling 369,000 square feet.

The market’s growth is driven by strengths in gene therapy and biomedical research. Its access to top research institutions like the University of Pennsylvania and Children’s Hospital of Philadelphia draws biotech firms and talent. Strong venture capital investment and relatively affordable real estate further boost its appeal, making Philadelphia an attractive alternative to pricier markets like Boston.

Raleigh-Durham, N.C.

The North Carolina metro is making strides in the life sciences arena, amassing more than 2.6 million square feet in construction starts across 18 properties as of October, accounting for 2.9 percent of its total inventory.

The market has seen a total of 517,165 square feet initiated year-to-date in October, alongside significant lab space construction starts in prior years, including 224,000 square feet in 2023 and 823,000 square feet in 2022.

Lab science project completions totaled 1.3 million square feet across 10 properties from 2019 to October 2024, accounting for 1.5 percent of the market’s inventory. In 2024, deliveries encompassed 224,000 square feet across two properties, following a 100,500-square-foot asset in 2023 and two properties totaling 363,249 square feet in 2022.

One of Raleigh-Durham’s key advantages is its affordable cost of living combined with a growing talent base, making it an attractive destination for life sciences companies.

“As early-stage companies receive funding and established firms expand, they are more likely to grow within their current markets or seek out additional life sciences hubs to support their work,” said Taneja.

Seattle

An already established player in the life sciences sector, Seattle recorded 1.8 million square feet of lab space construction starts across nine properties between 2019 and October 2024, 1.0 percent of its total inventory. While no new projects broke ground in 2024 or 2023, 2022 saw developers start on 1.1 million square feet across five properties.

Meanwhile, developers delivered a total of 1.8 million square feet of lab space across eight properties from 2019 to October 2024, accounting for 0.9 percent of the market’s inventory. In 2024 alone, 393,000 square feet was completed across two properties, while two properties totaling 443,000 square feet were delivered in 2023.

A significant advantage for Seattle lies in its fast-growing and affordable biotech labor pool, which attracts companies looking for skilled talent at competitive costs, Holmes pointed out. This emerging workforce, coupled with the metro’s strong focus on innovation and research, positions Seattle as an appealing destination for life sciences firms aiming to establish or expand their operations in a supportive environment.

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