The Greater Philadelphia region continues to solidify its position as a nationally leading life science hub, thanks to its dense network of top-tier incubators and prime location, which topped the priority list for both life science real estate investors and companies in the past year and is listed as a life science trend to watch for 2025.

A new report by JLL on life science real estate trends to watch in 2025 affirms the growing appeal for collaborative lab spaces with top-tier assets in prime locations, noting “the Philadelphia life science market ecosystem is emerging as a key player in driving innovation and growth in the sector… supported by a robust network of academic institutions, namely the University of Pennsylvania and Children’s Hospital of Philadelphia, pharmaceutical giants and biotech startups.”

As the 4th most active life science market in the U.S. for 2024, according to a recent report by Colliers, the region’s robust life science ecosystem boasts a strategic location and lower cost of living compared to competing U.S. cities, which enhances its attractiveness.

CBRE’s 2024 U.S. Life Sciences Incubator Survey provides further insight and explains how incubators help cultivate startups. Key findings of note include:

  • Incubators now track a broader range of success indicators in their startups, expanding from capital raised to include revenue, job growth, and more.
  • Incubators maintain a connection to companies they spawn long after they leave.

The survey, conducted from November 2023 through January 2024, included responses from twenty-seven U.S. life sciences incubators. Insights from the Life Sciences Roundtable Q2 2024 and the Life Sciences Town Hall Q1 2024 Figures Occupier Perspective Incubator Survey further emphasize the importance of incubators in the life sciences sector.

Signs of Growth

Over the next decade, 63% of surveyed U.S. life sciences incubator leaders said they expect to open more locations, and 52% project the average size of their locations to increase.

As we look towards 2025, the life science real estate sector is expected to emphasize global collaboration and cost optimization. With its robust foundation, strategic initiatives, and construction underway, Greater Philadelphia is well-positioned to capitalize on these trends and continue its upward trajectory in the life sciences market.