In 2023, funding for life sciences companies fell from record-high levels, forcing companies to learn to do more with less. Leasing activity slowed in the sector as tenants became more cost conscious, too, according to a report from Savills.

Despite this challenge, Synnovation Therapeutics, a precision oncology company, raised nearly $70 million in Series A funding last year. This was one of the year's largest funding deals in Philadelphia. In the Boston-Cambridge market, respiratory and immunological drug developer start-up Ailos Bio raised $245 million for Phase 2 of its medication to treat severe asthma.

At the same time, federal and state level governments are working to help grow the life sciences industry, according to Savills. For instance, the Colorado Office of Economic Development and International Trade announced that 25 companies and seven researchers were awarded $7.8 million through the Advanced Industries Accelerator Program. In addition, the government has appointed Philadelphia a Regional Technical and Innovation Hub for life sciences. This is an economic development initiative program specifically aimed at accelerating growth in this industry.