Running a life sciences company today is a complex business—meeting the needs and demands of top talent while navigating an uncertain healthcare legislative landscape amidst rising costs. Despite the many challenges and costs pervading the industry, one thing is for certain—retaining talent is the top priority, and companies are prioritizing the wellbeing of their employees above all else.
Life sciences companies are more than willing to pay top dollar for amenities-rich locations and facilities, and landlords here in Los Angeles/Orange County and in other top life sciences clusters are heeding this call with grand life sciences parks and other unique developments.
Undoubtedly, our life sciences market in the Los Angeles/Orange County region is a well-known powerhouse, producing 31 percent of all U.S. patents. In fact, since the recession of 2007, the region’s life sciences sector has been one of the most explosive drivers of employment. However, with space dwindling and demand for new product increasing, landlords and tenants alike are searching for new real estate solutions.
Although each top life sciences cluster in JLL’s Life Sciences Outlook Report has its own story, they all share a few common threads that bring them together. Check out the top five trends influencing the life sciences industry in 2017:
- Real estate strategies are evolving to include new hubs with the same fundamentals as the top clusters: World-class academic institutions, top-notch research facilities and a tight-knit medical community are characteristics found in top clusters.
- New options for life sciences companies are emerging: In an effort to be the next major life science cluster, cities such as Houston and New York are making a push to invest in their life sciences resources.
- Access to top talent outweighs skyrocketing rents and heated competition for space in premium clusters.
- New R&D funding strategies are influencing real estate decisions as large companies partner with or acquire smaller companies with promising R & D pipelines.
- With talent at a premium, life sciences companies are seeking out amenities-rich facilities and locations that attract and engage workers—and developers are responding with new options.
Today’s life sciences developments go beyond the value of design and infrastructure. In the quest to attract and retain talent as well as cultivate a quality work environment that enables companies to prosper, we can expect to see exciting new projects that will define the future of space and even the industry as a whole.