T
he life sciences investment sales market has been eerily quiet this year, with only three assets changing hands. This represents a stark decline from recent years, when $1.8 billion was transacted in 20 sales last year and $6.2 billion in 62 sales the year before. The Commercial Observer reported on this downturn.

    A Cushman & Wakefield report found that the vacancy rate in the sector has surged by 350 basis points since the end of last year, driven by an increase in sublease space and a surge in spec deliveries without tenants. This is leading to softening rents in some markets, according to Sandy Romero of Cushman & Wakefield.

    Despite this slowdown, the fundamentals that drove demand for lab space remain intact. The industry requires controlled environments, limiting remote work options. Additionally, the sector's resilience may be tested by shifting interest rates, but activity could rebound as a result. Romero predicts that highly amenitized, newly constructed Class A space will push asking rents higher through 2025.