The Life Science industry is facing more demand for information than ever before. Despite a global staffing shortage, more companies are looking to expand their offer to meet the need. COVID-19 has boosted the amount of research money available, leaving many Life Science companies in desperate need of more space, opening up the property investment market to find suitable premises for labs, manufacturing, and office space.
Finding the Funding Needed
With limited property availability, investors are enjoying higher offers and greater profits than ever before in return for funding new locations for Life Science companies. In fact, the Newmark 2021 Mid-Year Report states that over $33 billion was invested by venture capitalists in 2020 and over $26 billion in the first half of 2021. This investment has meant that more than 27 million sq ft of lab space has begun being constructed, and new Life Science locations are being developed all over the country.
Where Do Life Science Companies Want to be Located?
As most of the more traditional Life Science locations are now overwhelmed with demand, Life Science companies have been forced to look elsewhere for suitable locations. Areas that include Pittsburgh, Atlanta, and Miami are enjoying a new Life Science surge, and other areas are following in their steps. The main hope for these areas is that they will attract more Life Science people and innovation while improving their local economies and driving more informative research outcomes.
For Life Science companies, this is an opportunity to enjoy a period of growth that could last for many years, allowing them to relocate and enjoy purpose-built spaces that will enable them to make the progress that is in demand. To achieve this, the best areas for relocation include places where scientists are available, population-dense areas, and educational institutes to help grow the Life Science population. Many companies are moving to suburban areas as well as cities to reach the best deals, and this diversity has the potential to attract individuals that were once unable to relocate due to family and other commitments.
Many Life Science companies are unable to predict the amount of space they are going to need, especially if demand continues to grow rapidly. One solution for this is flex-building. A flex-build is a building that is planned to meet the needs of a Life Science company now and is able to grow as the demand changes in the future. This means flexible lab kit and furniture as well as ongoing construction solutions when demand grows rather than buying a place that is too small and having to move or that is too expensive to complete in one go.
Creativity Creates Success
Ultimately, it is clear that property developers and investors are under huge pressure to find the space needed for the Life Science industry to grow. To do that, creative thinking is being employed, and more companies are thinking outside of the box to use spaces that would not have even been considered five years ago.
In doing this, there will be more accessible Life Science centers in both urban and suburban locations, helping the industry to achieve its goals, invest in local communities, and reach a larger pool of talent. All in all, partnering the right property developers with the best Life Science companies could have the solution we’ve all been looking for!