TLDR:
- Venture capital funding for life sciences companies in the U.S. increased by nearly 30% in the first half of 2024 compared to last year.
- New York saw venture capital funding reach $2.3 billion in the second quarter of 2024.
In 2024, funding for life sciences and biotech companies in the U.S. saw a significant surge, despite a cooling real estate market in the sector. According to a report from Savills, venture capital funding for companies increased by almost 30% across the country during the first half of the year compared to the same period in 2023. In New York, venture capital funding reached $2.3 billion in the second quarter of 2024, totaling 176 deals. The report also highlighted that several life sciences developments in major cities like New York City, San Francisco, and Washington, D.C., are expected to be completed by the end of the year and into the next year.
While tenant demand for life sciences space has started to decrease nationwide, some major proposals and developments are still underway. This includes the NYC Public Health Laboratory in New York City, set to be delivered by 2026, which is planned to be the world’s first municipal bacteriological laboratory. Other key projects in New York City include Iron Horse Labs and a development at 707 11th Avenue in Hell’s Kitchen by Beacon Capital Partners.
The report from Savills also noted that higher demand for life sciences office properties in 2024 was largely driven by smaller leasing agreements, as many tenants remain cautious due to investment uncertainties stemming from the pandemic. While VC funding in New York has not yet reached the heights of $8.1 billion seen in 2021, significant developments are still in progress across the country, such as the research and manufacturing facility in San Francisco and the three-building development in Washington, D.C.
