Real estate is in high demand in the nation's life sciencesclusters, as companies race to develop a COVID-19 vaccine, and asmore corporations look to take advantage of expiring pharmaceuticalpatents.

|

Hubs are looking to use real estate to boost productivity as thegrowth of the global prescription drug market is expected tosurpass $1 trillion by 2022, according to the JLL 2020 USLife Sciences Outlook. The top three hubs are Boston, San Franciscoand San Diego, capturing 70% of venture capital in 2019.

|

New York, Los Angeles, and Philadelphia each increased theirscores in the ranking after hitting new levels of venture capital,and the race for a COVID-19 vaccine is expected to drive up demandin pharmaceutical-heavy New Jersey.

|

Raleigh-Durham, Houston, and Maryland also scored well due totheir proximity to major research institutions.

|

"Each cluster has a different specialty and occupies its ownpoint along the maturity spectrum, providing a diverse range ofoptions for investors and occupiers alike," said Roger Humphrey,executive managing director of JLL Life Sciences. "But they doshare a major commonality. Each cluster features a highly-educatedworkforce and ties to the research community, which in turnattracts a steady stream of multi-sourced investment that creates aneed for institutional real estate."

|

Other drivers for growth in the hubs beyond COVID-19 researchincludes more millennials seeking to increase their earningpotential, and the upcoming expiration of a suite of patents thatwill create an opportunity for mid-tier life sciences companies topursue new profit sources, according to the report. Many newproducts are also curative instead of therapeutic, boosting themarketing potential.

|

"Conditions are ideal for maximum profitability arising frominnovative new pharmaceuticals and medical devices," said AudreySymes, Research Director, JLL Healthcare and Life Sciences."Meaningful advances within the life sciences industry, such asmachine learning, are creating new sources of workflow and thusreal estate demand. This combination of simulative factors sets upthe life sciences industry to expand at an unprecedented pace, bothin terms of manufacturing and patient demand."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Nate Robson

Nate Robson is the U.S. Supreme Court and regulatory editor. Contact him at [email protected]. On Twitter: @Nate_Robson1.