Key Takeaways:

• A decline in funding resulted in a pullback in demand for real estate within the sector as tenants became highly cost-conscious, which has changed the supply and demand dynamics in favor of tenants.
• Venture capital levels came down substantially in 2023, making investors selective in how they use their capital.
• The Centers for Medicare & Medicaid Services (CMS) identified the first high-cost drugs subject to price negotiation under the Inflation Reduction Act (IRA).
• Pharmaceutical companies are likely to boost R&D funding and M&A activity, which may increase demand for lab space over time.
• Generative artificial intelligence (AI) has made strides in the life sciences industry, resulting in companies trying to get ahead of their competitors by adopting new ADI technology.
• Federal, state, and local governments are working to help grow their life sciences ecosystems, with officials increasing investments and offering more incentives for companies across the nation.