Chapter 9
Life Sciences
U.S. Real Estate Market Outlook Midyear Review 2026
2 Minute Read
2 Minute Read
Midyear Outlook
- The life sciences lab/R&D market is poised to benefit from strengthening demand drivers in 2026, helping to lower the overall vacancy rate. Job growth in the biotechnology R&D industry surged to its strongest pace in nearly three years in April and more life sciences IPOs have been made year-to-date in four years.
- Net absorption is forecast to increase in H2 2026, but will remain insufficient to materially reduce vacancy from historically high levels.
- 2026 completions of lab/R&D space will be the lowest in 10 years (3 million sq. ft.), helping stabilize the balance of supply and demand. Since mid-2023, lab/R&D construction activity has declined by 88% to 4.7 million sq. ft. currently, the lowest total since 2017.
- Average lab/R&D asking rents will continue to decline in 2026 as occupiers have an abundance of available space options.
Figure 12: Rent & Vacancy for Life Sciences Lab/R&D Buildings
Key Updates to Forecast
- Demand for life sciences lab/R&D space is expected to lower the overall vacancy rate by 40 bps to 22.5%. This improvement will be driven by a more robust labor market and capital markets environment.
- Net absorption is expected to accelerate in H2 and make the annual total strongly positive for the first time in three years.
- Average lab/R&D asking rent will decline more rapidly than our original forecast, based on weaker demand in the first half of the year.
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Life Sciences
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Explore the forces driving the life sciences recovery. Lab construction is easing while capital markets signal upside—see what's driving the life sciences inflection point
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Press Release
CBRE Analysis: Lenders Plan to Further Increase Activity, Office Sector Returns to the Centre of Investor Attention
22 October 2026
The European commercial real estate debt financing market is showing signs of renewed recovery and returning liquidity. According to the latest "European Lender Intentions Survey" conducted by CBRE, the global leader in commercial real estate services, 72% of European lenders plan to increase their volume of new loans this year compared with 2025. Only 7% of respondents expect a decline. The results of the analysis, which also reflect the impact of the ongoing conflict in the Middle East, point to a stabilisation of the global outlook and renewed confidence in the real estate market.
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