Having seen innovation thrive in dynamic life sciences clusters around the world, some major biopharmaceutical companies are creating their own dynamic environments. For example, in 2020, Bristol Meyers Squibb sold its 433-acre campus in Hopewell, New Jersey, to new owners. The secure, multi-purpose R&D and biologic/pharmaceutical manufacturing campus is now home to multiple tenants. Other organizations are developing hubs to foster knowledge-sharing with nearby healthcare organizations and research institutions.

Often, the first step in campus transformation is for the campus owner to execute a sale-leaseback. The campus owner would sell the property and lease back just the space they need. The new owner could then lease the remainder of the campus to complementary organizations. In an urban multistory facility, a biopharmaceutical company might convert a portion of its leased space into a life sciences incubator for startups that could become future acquisition targets.

Just as movie directors recognize that Hollywood is a top place to find acting talent, life sciences enterprises continue flocking to the top life sciences clusters to access top-tier scientific talent. However, the high cost of real estate in the major clusters has motivated innovators and talent alike to migrate to affordable cities offering attractive lifestyles, such as Austin and Tel Aviv.

In the United States, Boston, the San Francisco Bay Area and San Diego typically provide a reliable source of talent. Deep talent pools also have grown in other global cities, including:

• Cambridge and Oxford, U.K.
• Toronto and Vancouver, Canada
• Berlin, Germany and Basel, Switzerland in Europe
• Beijing and Shanghai, China
• Bangalore and Hyderabad, India

These growing markets also offer the most real estate options, including second-generation space, spec suites and a pipeline of purpose-built supply — although both real estate and talent may come at a high price in some locations. Also important, the influx of sustainable life sciences developments in the top clusters can play a role in talent recruitment, since 72% of biopharmaceutical company leaders say that employees increasingly expect the workplace to have a positive impact on the environment, according to JLL’s Future of Work: Key Trends for Life Sciences. 

As companies identify the best markets for talent, they should consider the skillsets that will be needed in the years to come. Access to artificial intelligence (AI) talent and other digital expertise will be critical for biopharmaceutical companies looking to harness the potential of new technologies. 

One of the most important decisions a life sciences real estate leader must make is when — and where — to build or buy real estate, and when to outsource to service providers like contract research organizations (CROs) or contract development manufacturing organizations (CDMOs). The complex decision requires analyzing internal and external factors and the economics of a real estate portfolio. 

This strategic conversation is most effective when companies take an integrated approach, considering business and scientific goals, key performance indicators and opportunities in the real estate market. JLL’s enterprise-level strategy services can help biopharma companies of all sizes create a path forward as they wrestle with making the right real estate environment available for today’s operations and the future.

Reimagining a life sciences real estate portfolio means aligning facilities with talent strategies, cost optimization and other business goals. Becoming highly agile and digitally integrated can help life sciences organizations future-proof their portfolios and support their five- and 10-year goals. Now is the time to seize the opportunity. 

Your breakthroughs are limitless. Your real estate portfolio should be too. Looking for fresh ideas and industry expertise to help guide your portfolio strategy and optimization? Contact the life sciences experts at JLL.