1、U.S.Life Science MarketConditions&Trends2Q25Reach Out to Your Newmark Contact for the Extended Edition ReportNEWMARK2Market ObservationsSource:Newmark ResearchWhat We KnowDemand metrics shifted during the second quarter of 2025,with leasing velocity and active tenant demand retreating in many market

2、s.U.S.vacancy rates are up 170 basis points over the quarter and 500 basis points over the year,as many markets are still contending with an overhang of new laboratory supply.Growth in active clinical trials and domestic pharmaceutical production is being counteracted by layoffs at the FDA and the s

3、ubsequent drop in new drug and biologics license approvals.With roughly 70%of active pharmaceutical ingredients used in the U.S.produced abroad,occupiers have front-loaded imports to mitigate recent tariff risk.Shifting federal funding priorities are impacting scientific grant awards from key agenci

4、es.Near-term funding remains a downside risk for many life science hubs despite the recent reinstate of hundreds of grants.Planned investments in domestic manufacturing operations among Big Pharma represents billions of dollars and a potential tailwind for the U.S.life science industry.What We Expec

5、tPolicy surrounding federal funding will remain uncertain,as hundreds of terminated or frozen grants have been reinstated.The ultimate impact on commercial real estate is also unclear.Laboratory users,especially those that are creditworthy or have operational runway,will maintain the upper hand as l

6、andlords contend with an overhang of vacancy in many markets.Supply risk continues to moderate as developer and investor interest shifts to other asset types.Functionally obsolescent space and conversion to other uses could reduce inventory further.Tariff policy is changing daily,sometimes hourly.Th