LOS ANGELES—Even as other US industries are dealing with fundamental disruption, the life sciences sector is on a long-term expansion track, with equally long-term implications for the real estate that supports it, says CBRE Group in a new report. The fact that an aging population is facing more health issues is only one of the factors behind that expansion.
“Many solid trends support strong growth going forward for the life sciences sector, especially in major R&D markets,” says Ian Anderson, CBRE director of research and analysis and lead author of the report. “The market for lab space offers several secular growth drivers and constrained supply.”
That combination of growth and constrained supply occurs in part because “unsustainable” healthcare costs are pushing the life sciences industry to find solutions that are more effective and less expensive, the report states. “Cost pressures have driven the industry to focus on operating in markets with greater concentrations of scientific talent, and this is reflected in the market dynamics for laboratory space throughout the country.”
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