Life Science Must Evolve to Accommodate New Uses

The life science industry is among the fastest growing asset classes in commercial real estate, and while there is plenty of opportunity, the industry is also facing rapid change. Pioneering concepts like genomics are driving demand, but require unique spaces. Bill Kane, president of East Coast and UK markets at BioMed Realty, says the industry needs to remain flexible to respond to these needs.

“It’s an incredibly exciting time for this industry,” Kane tells GlobeSt.com. “As a whole, the commercial real estate industry must adapt to and embrace this convergence by creating flexible spaces that address the current requirements of both life science and tech companies and can shift in the future as needs change.”

According to Kane, genomics technology is at the top of the list of emerging uses that will adapt the industry. “It has had a profound impact on the industry and its potential to deliver therapies in incredibly efficient and precise ways,” says Kane. “This move towards genomics has increased the pace that our tenants develop and process new science and to compete most effectively, many are seeking to cluster in dense urban areas that offer proximity to their peers and a deep bench of resources and talent.”

These concepts will also spur expansion into adjacent markets, outside of standard life science hubs. “As space continues to dwindle in high-demand core innovation markets, bordering towns and cities will be crucial for providing biotech tenants with quality R&D space when they need it—while still keeping them close to the academic and research institutions, deep talent pool, capital providers, and leading commercial life science and technology businesses that make up a thriving innovation ecosystem,” says Kane.

Additionally, life science companies remain focused on securing sustainable spaces with an emphasis on wellness. “Developers must prepare for this—whether they’re creating lab spaces, offices, or both—by incorporating health-savvy equipment and amenities into their spaces,” says Kane.

This is particularly true in top markets with limited labor. Talent is demanding sustainable, health-conscious workplaces, and will target companies with those offerings. “With this wellness element, sustainability and resilience must also be top of mind for developers this year and beyond,” explains Kane. “This is a priority that will help achieve longevity for our tenants and our industry, and something that’s central to our strategy and focus at BioMed.”