Life Sciences innovation is evolving at a breathtaking pace. Shifting priorities are creating new models, the race for talent is quickening and emerging markets are providing more value than ever before. As Life Sciences companies enter a new era of collaborative research and development, flexibility, and need for more creative space, an effective real estate and facilities strategy is key.
In our 2018 Life Sciences Outlook, JLL calls out 3 trends shaping the industry as it booms and bursts in both traditional and nontraditional markets.
- New and nimble models emerge. With real estate costs at all-time highs and availability at all-time lows, owners and occupiers are creating new models to achieve collaboration and flexibility.
- The race for talent is having a ripple effect on real estate. The life sciences industry continues to be a leading driver of employment across the country and the top clusters are leading the way
- New clusters are providing unique solutions for growing companies. In the race towards innovation, lack of available space is forcing life sciences companies to get creative with space options, leveraging trends in co-working and multi-tenant spaces to its advantage.
So, what does this mean for New York and its surrounding areas?
The greater New York market has major lab supply. Clusters of established lab stock with longtime industry presence are characteristic of the area. The area also has limited lab stock today, but is poised for future growth. Clusters of manufacturing space devoted to pharmaceutical, biological or medical device instrument manufacturing are popping up.
In 2016, the city announced a 10-year, $500 million commitment to advance the local life sciences ecosystem. Recent contributions from the NYCEDC include tax abatements, funding of incubator lab space, internship programs and public-private initiatives. In May, respondents submitted proposals for the $100 million applied life sciences campus hub in New York City.
While public initiatives have created a buzz around the local biotech market, economic fundamentals provide further evidence that the market can, and will, sustain increased life sciences investment in the coming years.
To read the New York Life Sciences Outlook, click here.