How R&D strategies are reshaping real estate needs

New technologies and research methodologies are pushing pharmaceutical and biotech companies to reimagine their research-and-development strategies, with significant implications for their real estate portfolios and how they’re managed.

JLL's Future of Work survey found that 37% of companies are expecting real estate to support innovation. But for life sciences, where research and discovery are key, it jumps to 48%.

How is life science real estate adapting to meet these new R&D demands? Jeroen Meijler, Senior Director of Consulting at JLL, identifies three emerging scenarios:

• High-Tech Powerhouses: Centralized hubs in major global cities
• Distributed Lab Networks: Flexible facilities dispersed across multiple locations
• Mega Ecosystems: Purpose-built life science neighborhoods with shared resources

"These scenarios aren't mutually exclusive," Meijler explains. "The future is likely a combination of all three, tailored to each company's specific needs, research modalities and strategies."

The High-Tech Powerhouse scenario envisions centralized, AI-powered research facilities in major life sciences clusters. Roche's Pharma Research and Early Development (pRED) site in Basel exemplifies this approach, consolidating 18 buildings into one state-of-the-art facility housing 2,000 scientists.

"By bringing researchers together, companies can foster collaboration and make more efficient use of specialized equipment," says Meijler.

However, he points out that it's not without risks.

“The choice of location in this scenario is key to ensure that sourcing the right talent - from biologists and chemists to computational scientists and AI prompt engineers – does not become an issue. Business continuity factors should also be carefully considered, particularly in areas facing more frequent climate events."

What’s more, while tariffs are now a concern across the globe, at present this primarily impacts manufacturing capabilities. Nevertheless, says Meijler, if proximity to these facilities is a priority, then considering potential tariff implications could also play a critical role in selecting the right R&D location.

The Distributed Lab Network model spreads R&D activities across multiple locations, leveraging local expertise and specialized talent pools, while enabling 24-hour research cycles. This approach offers greater flexibility and risk mitigation.

"We're seeing companies like Novartis adopt this model," Meijler notes. "They might conduct early-stage discovery in Basel, with bioinformatics and data science support in Hyderabad, India. Advanced technologies like augmented reality and automated systems make this global collaboration seamless."

The Mega Ecosystem scenario takes existing life sciences clusters to the next level.

Take the South San Francisco Bay area where over 250 biotech companies already rub shoulders in 12 million square feet of biotech space. But in future, new ecosystems will create purpose-built neighborhoods where multiple companies share resources and facilities, not just zipcodes.

“This model used by AstraZeneca's BioVenture Hub and J&J's JLABS, can dramatically boost innovation by accelerating opportunities for cooperation and discovery," Meijler explains. "But the challenge is balancing openness with IP protection and competitive concerns."

In mature clusters such as Oxford in the UK, or Boston/Cambridge, Massachusetts, a new generation of multi-tenant hubs are emerging, offering shared access to expensive equipment, flexible lease terms and opportunities for collaboration.

It’s not just location decisions that are affected by these future scenarios. The role of outsourcing is evolving, too, thanks to the complex challenges presented by the management of these highly specialized buildings.

"We're talking about a wide range of facility types – labs, offices, manufacturing sites, data centers – each with unique needs,” says Steve Williams, Life Sciences Procurement Lead at JLL. “This requires deep expertise and skills in areas like GxP compliance, lab safety, and contamination control – not to mention ever-evolving sustainability regulations and industry best practices."

Outsourcing gives firms access to specialized knowledge and advanced technologies without significant capital investments. “It allows companies to focus funds on their core mission while leveraging best practice from across the industry," Williams says.

For multinational corporations, working with a global supplier means access to consistent quality and standards across different locations worldwide.

But, says Williams, it’s all about finding that sweet spot between global consistency and local relevance. “Having the ability within your supply chain to draw on the deep knowledge and expertise of smaller partner organisations, can also prove key in less well served locations.”

The future of life sciences R&D real estate is dynamic and complex. To navigate this changing landscape, Meijler recommends that life sciences companies:

• Understand how their R&D organization is evolving, including shifts in talent needs and how technology adoption is impacting workflows.
• Stay informed about the latest developments in lab space design and construction.
• Develop deep knowledge of potential locations, including talent pools, ecosystems, and public-private partnerships.
• Balance specialization with flexibility in lab design, ensuring inherent sustainability and adaptability.

“By understanding these emerging scenarios and their implications, companies can make informed decisions that support their research goals, attract top talent, and drive innovation in an increasingly competitive landscape,” says Meijler.