Dive Brief:
- Hyperlocal, occupier-driven markets are expected to drive the life sciences sector in 2024, a recent report from JLL says.
- The life sciences industry can expect a shift toward multimodal fuel sources and integrated technology for operating efficiency, with local zoning ordinances urging an increased focus on lab sustainability, according to the firm’s 2024 Life Sciences Trends to Watch report.
- As occupiers increasingly prioritize workplace strategies, along with a newfound emphasis on efficient utilization of space, the life sciences sector will need to “aggressively” embrace new technology tools, particularly AI and lab automation, the report notes.
Dive Insight:
Life sciences construction deliveries will reach a record high in 2024, with 38 million square feet of new lab space currently under construction, likely outpacing demand in most markets and positioning the market for further lab availability in the year ahead, according to a recent CBRE report.
JLL predicts that finding suitable physical space for operations will be easier in 2024 for both startups and established companies, as real estate owners seek to attract tenants by providing amenity-heavy spaces. The life sciences industry centers itself around maximizing value and scale through portfolio space optimization and “cutting-edge technology,” the report says, emphasizing that this trend will place pressure on owners and operators to create “highly effective environments that foster commercial scientific endeavors.”
To that end, automation technologies will play a crucial role for life sciences firms, solidifying their aim to generate greater cost savings over time and increase the number of high value tasks performed with greater efficiency and scale, inside and outside of the lab.
The report also points to technology adoption as a pathway for organizations to implement decarbonization efforts, noting that the carbon accounting and decarbonization tools currently available can enable companies to “forecast climate transition risk and inform asset prioritization and capital planning decisions.”
Life sciences firms are actively seeking sustainable and environmentally friendly alternatives to power their operations and facilities management as part of an effort to align with corporate social responsibility goals, JLL says, pointing to this trend as a shift that can help reduce costs and reliance on traditional energy sources.
The convergence of these factors presents a “perfect storm of activity” that has the potential to “significantly impact real estate utilization in the long term,” the report states, noting that a comprehensive reassessment of traditional portfolio and facilities strategies can create an opportunity for organizations to “carve a niche in the evolving industry landscape.”
