Regional Review: Raleigh-Durham’s life sciences cluster expands

Writer: Eleana Teran

Regional Review is a year-end series from caa that looks at key developments in a focused industry throughout the year and sets the stage for what’s to come in the near term.

December 2025 — As U.S. demand for biomanufacturing capacity grows, Raleigh-Durham is capturing an increasing share of investment. Global firms are expanding research and production operations, strengthening the region’s role in the national life sciences network.

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“Life science manufacturing has grown tremendously in this market, and Raleigh-Durham offers the right combination of industry support, access to land, strong higher education institutions, and targeted incentives that bring major projects here,” said Shawn Pepple, Raleigh business unit leader at DPR Construction, in an interview with Invest:. 

In a year defined by global supply chain uncertainty and rising demand for biologics, the Raleigh-Durham region, anchored by Research Triangle Park (RTP) and leading institutions such as Duke University, NC State, and UNC-Chapel Hill, continued its transformation from a research center into a major hub for biomanufacturing. A wave of new investments and facility expansions reflected the region’s growing role in the nation’s life sciences economy. 

Several major announcements reinforced that momentum. FUJIFILM Biotechnologies officially opened the first phase of its $3.2 billion cell culture manufacturing facility in Holly Springs, one of the largest of its kind in North America. Biogen expanded its RTP operations with a $2 billion modernization project, marking three decades in the area. Novartis announced a $771 million investment across Durham and Wake County, adding new facilities expected to create 700 jobs by the end of 2030. Meanwhile, OXB acquired a viral vector manufacturing plant in Durham, expanding the region’s footprint in gene-therapy production.

Tracking growth and expansion

The scale and pace of activity across the Triangle reflect both local strengths and global market shifts. According to CBRE’s 2025 U.S. Life Sciences Outlook, national lab and R&D leasing activity grew by more than 41% year-over-year in late 2024, with Raleigh-Durham ranking among the top emerging clusters for biomanufacturing and innovation space. North Carolina’s combination of cost efficiency, research depth, and workforce readiness continues to draw new entrants to the market. 

“When companies look at where to expand or relocate, they consistently tell us their No. 1 consideration is the workforce,” President Jeff Cox of the North Carolina Community College System told Invest:. “There isn’t a community anywhere with thousands of engineers, technicians, or advanced manufacturing workers simply waiting for the next large employer to arrive. What companies want is confidence that a state has the ability to upskill or retrain its workforce quickly. That’s where our system comes in.”

The North Carolina Biotechnology Center (NCBiotech) reported that life sciences contribute more than $82 billion to the state economy, support over 75,000 highly skilled workers, and encompass more than 840 companies statewide. State and local organizations have played a central role in sustaining that trajectory. The Economic Development Partnership of North Carolina highlighted life sciences as a top recruitment priority, noting that the sector attracted over $10 billion in announced investments in 2024. Many of these projects focus on advanced biologics, cell therapy, and vaccine manufacturing, subsectors that require specialized facilities and highly trained staff. 

The focus on high-complexity manufacturing aligns with the broader U.S. trend toward domestic production resilience. According to PharmaVoice, Global firms are accelerating onshoring to reduce exposure to international supply chain risks, citing the Triangle as a preferred site for its established infrastructure and talent pipeline. Collaboration among state agencies, research institutions, and industry partners remains central to North Carolina’s success in attracting new biomanufacturing and life-sciences investment.

Challenges and constraints 

Rapid growth has created its own set of pressures. The Triangle’s biggest challenge is talent supply. Workforce readiness remains one of North Carolina’s greatest advantages, but it is also an area that will demand sustained attention as the industry scales. The North Carolina Biotechnology Center highlighted several initiatives aimed at building long-term capacity, from military-to-biotech transition programs under the MOVE initiative to scholarships through the Life Sciences Apprenticeship Consortium, and outreach efforts reaching more than 400 students across the state.

“Many of the programs that employers want us to expand — advanced manufacturing, healthcare, engineering technologies — are also the most expensive to operate,” said Cox, emphasizing the importance of ongoing support. “With Propel NC, we’re asking the General Assembly for an additional $93 million so we can increase reimbursement for high-wage, high-demand programs. This will allow colleges to expand capacity in fields where employers need workers most, without losing money every time they add a student. It’s an investment that will pay dividends across every region of the state.”

Cox added that expanding apprenticeships remains a top priority. “Apprenticeship is one of the most effective tools we have for building a strong workforce pipeline, and expanding those opportunities has been a priority for the system,” he said. “Together with partners from NCWorks, the community colleges, and many others, we’ve identified 11 major goals for strengthening workforce development statewide. One of those goals is to double the number of apprentices in North Carolina.”

While workforce readiness remains a competitive advantage, other structural challenges are beginning to surface. Supply and demand for specialized facilities, particularly laboratory and R&D space, are tightening as companies scale operations and new entrants seek room to grow. CBRE found that leasing activity across the 13 largest U.S. life-sciences markets rose to 2.9 million square feet in late 2024, up from 2.0 million a year earlier.

However, conditions remain mixed. According to Cushman & Wakefield, U.S. life sciences asking rents averaged $67.88 per square foot in 2Q25, flat quarter-over-quarter but down 3.3% year-over-year, while vacancy rates reached a record 23.9%. The firm noted that although construction activity has slowed, higher preleasing levels should help balance the market as new projects are absorbed.

“The life sciences industry… has slowed down,” said Ryan Toland, executive vice president and principal at Colliers, in an interview with Invest:. “Leasing velocity has dropped, and there aren’t many large biotech deals happening right now.” Toland added that while industrial activity remains solid, competition for high-quality sites has eased compared with the peak years of rapid expansion. 

Infrastructure and housing pressures are also growing as the population increases in Wake and Durham counties. These dynamics are shaping broader discussions about how the Triangle can balance growth with affordability and access, ensuring that its success remains sustainable over the long term. 

Navigating a shifting landscape

While local and state momentum remain strong, national policy shifts are creating new uncertainty for the research and innovation side of the life sciences ecosystem. According to the New York Times, federal funding for the National Institutes of Health (NIH) and other science agencies has faced renewed scrutiny, with proposed reductions to research budgets.

Analysts warn that sustained cuts to NIH and ARPA-H budgets could slow early-stage research, decrease innovation, and disrupt clinical trials, according to Fierce Biotech, affecting universities and startups that rely on federal awards to bridge discovery and commercialization. In North Carolina, major research institutions, including Duke, UNC-Chapel Hill, and NC State, benefit from substantial NIH funding that supports early-stage discovery and collaboration with industry. For emerging life-science hubs like Raleigh-Durham, that uncertainty reinforces the importance of state and private-sector investment in maintaining research continuity.

Federal uncertainty may test how far the region’s momentum can go, but the fundamentals remain clear. Years of strategic investment have positioned the Triangle to compete at a global scale in research, manufacturing, and workforce development alike. The challenge ahead will be sustaining that balance as growth spreads beyond traditional hubs and as national funding priorities evolve. Public and private initiatives are already shaping what the next phase looks like. From expanding biomanufacturing capacity in Holly Springs to deepening university partnerships across Durham and Chapel Hill, the market continues to prove its adaptability.

Want more? Read the Invest: Raleigh-Durham report.