Life Sciences Real Estate Trends to Watch in 2026

A new outlook from CBRE highlights several trends shaping the life sciences real estate market heading into 2026.

The construction pipeline for lab and R&D space has slowed significantly, with approximately 6 million square feet currently underway nationwide. That is the lowest level since early 2019 and a sharp drop from the more than 37 million square feet under construction in 2023. With fewer new projects coming online, supply and demand for lab space are expected to stabilize.

At the same time, large pharmaceutical companies are expected to continue investing in life sciences facilities, particularly as more manufacturing and research activity moves onshore. Companies with advanced clinical trials and larger capital backing are likely to drive much of the near-term demand for life science lab space.

Biotech performance may also influence real estate demand. The State Street SPDR S&P Biotech ETF (XBI), often viewed as a bellwether for biotech valuations, saw strong gains in the second half of 2025. Historically, increased valuations have led to renewed leasing activity for laboratory and R&D facilities.

Together, these trends point to a market stabilizing after several years of rapid expansion.

Read the full report from CBRE (page 35) >