Key trends drive life sciences firms to premier markets, despite higher rents and labor costs
The U.S. life sciences industry continues to thrive, with markets including Boston, Raleigh-Durham and the San Francisco Bay Area topping the list of the most densely concentrated regions for well-known biotechnology firms. Although rents are growing in these markets, firms are choosing to remain situated, due to their need for R&D infrastructure and qualified labor pools. As a result of limited available laboratory space, however, some firms are being forced to consider secondary markets.
“In their U.S. operations, biopharmaceutical companies are being squeezed by rising costs for highly trained talent, more expensive real estate markets and a shrinking supply of available laboratory space,” said Roger Humphrey, Executive Managing Director and leader of JLL’s Life Sciences group. “Many are willing to pay a premium for proximity to the leading research institutions and scientists, but the lack of space is compelling companies to look at secondary sites that are a little less conveniently located.”
A few key trends impact the way in which life sciences firms are managing their business operations. These trends, as well as the ranking of the most dominant U.S. life sciences cities are featured in JLL’s 2015 Life Sciences Outlook report.
- The rise of generics and biosimilars
- Increased consolidation and globalization
- Space that enables productivity and innovation
- Following the talent
About the Report
JLL’s annual Life Sciences Outlook tracks geographic shifts in life sciences innovation, operations and facilities investments, including analysis of countries and cities most actively investing in their life sciences sectors. It includes a ranking of the top U.S. life sciences clusters, a look at top global cities to watch, as well as analyses of global trends. The complete findings of the Life Sciences Outlook are available in a dedicated microsite here.
JLL offers a team of real estate and facility management experts dedicated to helping life sciences companies optimize and manage their real estate portfolios. The firm provides a comprehensive range of facilities management services to the life sciences community, providing services for 100 million square feet of research, manufacturing and office space, including GxP operations. Its industry-leading full-service platform includes: integrated facilities management, engineering and operations, energy and sustainability, transaction advisory services, lease administration, project management and comprehensive laboratory services.
A leader in real estate outsourcing, JLL’s Corporate Solutions business helps corporations and public institutions improve productivity in the cost, efficiency and performance of their national, regional or global real estate portfolios by creating outsourcing partnerships to manage and execute a range of corporate real estate services. This service delivery capability helps corporations improve business performance, particularly as companies turn to the outsourcing of their real estate activity as a way to manage expenses and enhance profitability.
For more news, videos and research resources on JLL, please visit the firm’s U.S. media center webpage. Bookmark it here: http://bit.ly/18P2tkv.
Life Sciences in New Jersey
Ranked #12 on the 2015 U.S. cluster rankings New Jersey remains a global life sciences hub. Recognized for its top-rated universities, qualified workforce, innovative hospitals and research institutions, the Garden State is home to 14 of the industry’s leading bio-pharmaceutical headquarter facilities.
Read Dan Loughlin’s insights on the life sciences industry in NJ via NJBiz.