CHICAGO, Nov. 12, 2025 – According to new research by JLL, university-anchored innovation districts have cemented their position as the United States’ most resilient and promising real estate submarkets, delivering higher rents and higher occupancies than proximate office and retail markets.

The University-Anchored Innovation Districts report examines the performance of 18 key districts across the nation, encompassing both mature hubs like Cambridge’s Kendall Square and rising centers, such as Pittsburgh Innovation District. These districts are distinguished by their proximity to leading research universities; deep pools of STEM talent and their remarkable success at attracting diverse funding, including record-setting venture capital.

“University-anchored innovation districts are not only outperforming on market fundamentals but are positioned as engines of future economic growth through their unmatched talent, research, commercialization pathways, and investment networks,” said Emily Crutcher, Senior Vice President, Government and Education Division, JLL. “Entrepreneurs who understand these trends can harness an innovative edge, investors who act on these trends can deliver resilient returns, and state and local leaders who support and incentivize these districts can drive economic development in their communities.”

Premium rents and low vacancy outpacing national trends

The research indicates that office assets in university-anchored innovation districts command a 10% rent premium and maintain vacancy rates 220 basis points lower compared to the national average. Mature innovation districts further outperform, commanding a 36% premium on direct asking rents compared to national averages. Within their local markets, these districts outperform with a 26% office rent premium and vacancy rates 290 basis points lower than surrounding submarkets.

Another important element of these innovation districts is the amenitization and activation of the ground floor plane. The right retail merchandising mix can create a vibrancy that enhances the collaborative spirit of these places. JLL’s analysis finds that retail is also thriving in these innovation districts, with retail rents averaging 28% higher than nearby submarkets, supported by dense, walkable developments that attract students, faculty specialized workers, and the wider community.

Higher education enrollment and STEM growth

Despite national trends of declining higher education enrollment, universities at the core of these innovation districts saw undergraduate enrollment increase by 16.6% (2015–2023), while nationwide, enrollment fell by 1.4%. Master’s degree completions also outpaced the national rate by almost 10 percentage points, reinforcing a robust pipeline of highly educated talent. From 2013 to 2023 between 36,000 and 85,000 STEM graduates came from institutions such as NC State, UCLA, Stanford, Georgia Tech and UC San Diego.

“This concentration of graduate students fosters increased research activity and entrepreneurship, increasing start-up activity and industry partnerships that strengthen the innovation ecosystem,” said Elsa Wilson, Senior Analyst, Industry Research, Americas, JLL. “These specialized ecosystems leverage the research capabilities and institutional stability of higher education to create a thriving collaborative environment.”

Investment and economic ecosystems

Innovation districts benefit from a highly diversified and resilient funding landscape. In 2023, approximately 50% of higher education R&D funding came from federal agencies, with additional support from states, non-profits and the private sector. Venture capital flows are markedly concentrated in these districts; cumulative early-stage VC investments in major university-anchored metros surpassed $180 billion since 2015, powering a virtuous cycle of academic research, commercialization and enterprise formation.

Models of innovation and growth

Kendall Square in Cambridge is the world’s densest biotech cluster and home to major life sciences and technology leaders. Together, MIT and Harvard have produced more than 65,000 STEM graduates and over 4,800 startup founders in the last decade.

Anchored by Carnegie Mellon University, the University of Pittsburgh and the National Robotics Engineering Center, Pittsburgh Innovation District excels in robotics, AI and high-growth startups like Duolingo. The city’s two main universities contributed more than 80,000 STEM graduates and fostered over 1,400 startup founders.

With over 150 occupiers across industries clustered for knowledge sharing and talent, Stanford Research park has produced over 36,000 STEM graduates from 2013 to 2023 and nearly 4,000 startup founders.

STEM employment outlook

Regions that are home to university-anchored innovation districts are projected to see exceptional STEM employment growth by 2035. Markets such as Phoenix, Atlanta, and Houston are all expected to see at least a 40% increase in total STEM employment from 2015 – 2035. These districts serve as engines that fuel growth and economic development in both their immediate submarket and the broader region.

“University-anchored innovation districts are ecosystems that directly support the short- and long-term goals of businesses and organizations in these communities,” added Crutcher. “These trends are expected to reinforce the competitive advantage of innovation districts.”

JLL is the premier provider of strategic real estate advisory for local, state, national and federal governments as well as public and education institutions. Its national team is helping governments transform their real estate and office portfolios for the future of work and create more housing. JLL’s practice employs experts that cover the entire real estate lifecycle from strategy, public-private partnerships, facilities management and sustainability services to transaction and project management. JLL brings both the experience and expertise to convert real estate portfolios into financially-sound, working assets that help communities thrive. Visit jll.com/en-us/industries/government.

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