Alternative Disruptors: Life Science Real Estate in Transition

May 19, 2026

Colliers’ Joe Fetterman discusses the current state of life science real estate in this new episode of Alternative Disruptors.

Life science real estate has been widely regarded as one of the most resilient sectors of the property market in the U.S. After a surge in new construction that started during the COVID-19 pandemic, the sector is now faced with sharp-rising vacancies in some of the biggest clusters.

Long-term drivers like talent, funding, onshoring and biomanufacturing still point to major opportunities, however. In the latest episode of Alternative Disruptors, host Tudor Scolca-Seușan talks with Colliers Executive Vice President Joe Fetterman about where this asset class is headed in 2026 and beyond.

Fetterman discusses how the sector evolved in recent years, from the robust enthusiasm felt by investors in 2019 and 2020, to the interest rate increase period and the slow absorption levels in 2024 and 2025.

“There was a point in time where, I don’t care what you were doing, if it sounded good, the money was coming,” Fetterman added. “Those days are gone.”

There is hope for the future, however. Fetterman explains why the life science sector’s story is not black and white: while demand for R&D lab space has softened, biomanufacturing is gaining momentum due to onshoring efforts, the U.S. pharma consumption market and blockbuster drug capacity needs.

The conversation also covers how investors find opportunities amid oversupply and potential distress, including the case of ‘reversions’ from lab to innovation use or office. Fetterman also touches on the rise of AI and its potential to disrupt the sector.

In this episode, you’ll also hear about why the top clusters (Boston, San Diego and San Francisco) are bound to recover faster, as well as which emerging markets have the most potential to become a major hub and why.

Here’s a breakdown of the discussion: