Lab Space Homecoming: Tariff Uncertainty Fuels Reshoring of Life Science Facilities

Amid a dynamic market landscape, shaped largely by economic and regulatory factors, life sciences companies have been cautious about their real estate decisions over the last few years. Due to shifting federal trade policies, however, many in the industry have committed to scaling up their domestic facilities in the near term.

According to JLL’s most recent U.S. Life Sciences Property Report, there have been 15 major investment announcements through the first half of 2025 for new U.S. biomanufacturing and R&D facilities, totaling more than $270 billion. This is a sharp increase – there were only 16 such announcements combined between 2022 and 2024 – driven largely by looming tariffs aimed at the pharmaceutical sector.

For example, pharmaceutical giant Eli Lilly announced in February it will invest $27 billion in the U.S. over the next five years. The plans call for four new manufacturing plants that would result in an estimated 3,000 permanent high-skilled jobs. No locations for the facilities have been announced yet and the Indianapolis-based firm is currently in negotiations with several states.

Tariff uncertainty has also led to a number of international companies committing to similar investment. Swiss pharmaceutical company Novartis announced plans to allocate up to $23 billion over five years, which would include expansions at existing properties, as well as seven new facilities. French pharmaceutical giant Sanofi will invest at least $20 billion in its U.S. operations through 2030. Another Swiss group, Roche, announced a $50 billion increase to its manufacturing and R&D footprint in the U.S., forecasting the creation of up to 1,000 jobs.

While these investments will take time to develop, impacts are already being felt across the life sciences real estate sector. According to JLL, touring activity at existing biomanufacturing facilities has risen 185% over the past six months.

As these companies look to enhance their operations in the U.S., new facilities in existing life sciences hubs will see the most demand. JLL data shows that newer, purpose-built assets in the three largest markets – Boston, the Bay Area and San Diego – have experienced the strongest leasing metrics, with the availability rate in this segment falling 130 basis points over the past two quarters.

With more than 51 million square feet of inventory, Boston is the nation’s largest life sciences market, and arguably the most desirable. As building quality and location matter more than ever before, highly amenitized facilities like FORUM – the first purpose-built life sciences building in Boston Landing – will see strong demand as companies seek spaces that not only support research but also foster openness and community through ground-level integration with the surrounding streetscape.