Originally published on February 16, 2022, by Cole Mortland for CBRE.
Investment in U.S. life sciences real estate increased by 62 percent last year, with further growth of at least 10 percent expected in 2022, according to a CBRE research report.
Investment in life sciences real estate, comprised of lab and Research and Development (R&D) properties, reached $21.4 billion in 2021, a 62 percent increase over 2020. Investment in the sector has grown by 111 percent since 2018.
“The surge in investment in the U.S. life sciences market is underpinned by strong supply and demand fundamentals,” said Chris Bodnar, Vice Chairman and Co-Head of Healthcare & Life Sciences Capital Markets at CBRE. “A shortage of existing life sciences space available for purchase, coupled with robust and soaring property prices, have led most real estate investors focused on this sector to pursue development opportunities.”