Investor interest is growing in the life sciences sector as evidenced by an increase of nearly 30% in venture capital funding in life sciences companies during the first half of this year. This trend is driven by companies moving scientific innovations forward into clinical trials with promising data outcomes, according to Savills USA's first half-life sciences sector report.

Continued increases in investment could stimulate leasing activity and help absorb oversupply in the saturated life sciences market, which is set to receive a substantial amount of square footage currently in its development pipeline through the end of this year.

Savills said cost-conscious occupiers have been focused on smaller leases this year, and those occupying larger spaces are delaying decisions or looking to densify their footprint amid the recent uncertain investment and economic environment.