Companies are accelerating efforts to onshore pharmaceutical production, with several announcing plans to establish new manufacturing facilities across the country. This shift has big implications for commercial real estate, according to Cushman & Wakefield's head of life sciences and healthcare insights, Sandy Romero.
The United States spent $127 billion on pharmaceutical imports during the first four months of 2025. That’s a 74% increase over the same period last year.
Behind this surge is a U.S. Commerce Department investigation that began in April into industries considered vital to national security, including pharmaceuticals, according to Romero.
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“Everything from brand name drugs to generics and the active ingredients that go into them are now under the microscope,” he said.
The results of the investigation, which are expected to be released soon, could lead to significant tariffs on imported medicine, and the pharmaceutical industry is already responding although the scope and duration of tariff measures remain uncertain. This comes at a time when domestic manufacturing has already been gaining traction and is now likely to accelerate.
“However, many generic drug makers rely heavily on imports to keep prices low,” said Romero. “If tariffs hit hard, some of these companies could face serious financial pressure, possibly even shutting down facilities or exiting the market altogether.”
A slowdown in research and development could impact life sciences real estate, potentially slowing leasing activity in a sector that already is dealing with softening fundamentals, Romero further warned.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
