The great lab space boom: excess vacancy sets the stage for the next cycle

The life sciences market is facing a supply imbalance. A surge of high-profile, speculative lab developments launched during the pandemic are now delivering into an already saturated market. Buildings designed for rapid biotech expansion are instead sitting idle as landlords compete to secure a limited number of tenants.

Nearly 60 million square feet (msf) of life sciences space was delivered between 2020 and 2025 in the 11 hubs tracked by Savills Research across the U.S. Annual deliveries accelerated from approximately 4.5 msf in 2020 to 14.5 msf in 2025 as development surged amid record capital availability and investor confidence. While this wave of new supply is currently weighing on market conditions, it also establishes long-term infrastructure that will support ongoing life sciences research in the years ahead.

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