Robust Investment Trends in Life Sciences Real Estate
Prior to 2020, new investment in Life Sciences real estate was on the rise. Technological breakthroughs and record levels of financing were driving demand for buildings geared toward biotech, pharmaceuticals, research, and lab work.
Then the Covid-19 pandemic happened.
Billions more in funding poured into vaccine research and the development of other therapies to treat the virus. Investor interest in the Life Sciences sector was catalyzed.
For good reason — numerous breakthroughs in research and technology are spawning a new era of medicine and treatment, and the companies and scientists involved in this work need physical space. Unlike many sectors that could lean on IT infrastructure to move work into the digital realm, Life Sciences companies need specialized equipment and physical infrastructure that cannot be moved into a remote setting. For this reason, occupancy rates remain high even as a majority of the economy shifts to “hybrid” and remote work.
A record 31+ million square feet of life-sciences space was under development in Q4 2021, and life science real estate investment soared by 62% last year. The projects underway involve both ground-up construction and conversions of existing office buildings no longer in use.
We don't see any signs of slowing in 2022.
These exciting trends in the Life Sciences space were recently featured in a Wall Street Journal article, underscoring the attention increasingly being paid to this robust growth story.