Domestic life science manufacturing is now a focal point, and we are seeing evidence in employment data and our construction data. Data from the Bureau of Labor Statistics shows Pharmaceutical & Medicine Manufacturing Employment on the rise in 2025, after being relatively flat for the past few years. The chart below shows the percentage of new life science construction that contains manufacturing (purple), manufacturing & lab (gray), or just wet lab (green). The unusually high share of construction that is pure manufacturing stands out in 2025. This is the result of two factors. In 2025, 3.7 million square feet of life science manufacturing space broke ground, which is double the level of construction seen in 2023 and 2024. The other factor is the vast reduction in new wet lab construction, increasing manufacturing’s relative share.
Onshoring pharmaceutical and biological manufacturing will continue to drive growth in this sub-sector. Currently, only 1/3 of this manufacturing space is owned by a 3rd party investor, with the rest owned and operated by the life science tenants themselves. Not all life science firms have the capital to develop their own facilities. The shift towards utilizing domestic manufacturing space will provide new opportunities for the real estate stakeholders, so make sure to keep an eye on this trend.
