In 2023, the life sciences and research and development real estate market underwent a reset, as reported by JLL. However, experts predict that demand will rebound in the coming year. These industry professionals have shared additional trends for the sector in 2024.
One major trend is an increase of power within established clusters such as Boston/Cambridge, south San Francisco and San Diego. Nick Cassaro of BGO explains that venture capital investments are rising in these core clusters due to their strong employee growth potential and fundraising capabilities.
Another trend is an increase in mergers and acquisitions within the industry. Smaller companies are merging with others to extend their runway while working towards common goals, while larger pharma companies target smaller ones to grow their pipeline.
In terms of construction activity, there has been a boost in speculative projects during the pandemic which may lead to increased vacancies for R&D space once completed. However, Project Management Advisors’ Ken Richter remains optimistic about this sector’s future due to demographics driving more research needs.
Lab design overhauls are also expected as pharma CEOs look for ways to accelerate drug discovery processes through technology-enabled labs with reduced footprints per specialist from 8 square meters down to 6 square meters thanks quantum computing capabilities being incorporated into design plans along with cost reduction measures and carbon neutrality efforts.
