Markets from San Diego to Seattle show divergent fortunes as funding uncertainty and soaring vacancies reshape the sector’s real estate landscape

The gleaming lab towers that sprouted across California’s innovation corridors during the pandemic boom now stand as monuments to a market miscalculation. From San Diego’s Torrey Pines to the Bay Area’s biotech clusters to Seattle downtown lab towers, West Coast life sciences real estate is grappling with a sobering new reality: too much space, not enough tenants, and a funding environment that remains stubbornly cautious despite recent signs of stabilization.

The numbers tell a stark story. San Diego’s life sciences leasing volume plunged 41 percent in the first half of 2025 compared to the same period last year, dropping from 1.38 million squ

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