Rapid growth and structural changes in the life sciences industry is driving unprecedented investor and developer interest, says JLL

JLL has today published its inaugural UK life sciences report, ‘UK Life Sciences’, which reveals that revolutionary new treatments, structural changes, advancing technologies and increased levels of investment are fundamentally changing life sciences.

September 10, 2019

JLL has today published its inaugural UK life sciences report, ‘UK Life Sciences’, which reveals that revolutionary new treatments, structural changes, advancing technologies and increased levels of investment are fundamentally changing life sciences.

The report highlights the following:

  • The UK life sciences sector is growing rapidly on the back of significant private and public investment
  • Large pharmaceutical companies are increasingly looking to co-locate with SMEs and academic institutions
  • Large and small companies are heading to city centre locations or campuses with a critical mass of activity to attract and retain top talent
  • Location and environment are becoming sources of competitive advantage for life sciences companies
  • Hotspot locations are London, Oxford and Cambridge, with established clusters also in Manchester, Edinburgh, Glasgow & Nottingham and emerging clusters in Birmingham, Leeds, Newcastle, Bristol, Aberdeen and Dundee
  • The “digitisation” of drug discovery and development means that the type of facilities life sciences companies need is changing and computational space, which looks more like traditional office space, is expected to account for an average of a third of the requirements of companies in the sector
  • Increasing interest in “flex” lab space that companies can fit out quickly to accommodate their needs on shorter term leases
  • The fundamental drivers of the life sciences industry mean that it tends to be resistant to economic shocks

Dr Glenn Crocker MBE, UK executive director and head of life sciences, JLL said: “There are seismic shifts in the life sciences industry, driven by fierce competition for talent and innovation. Companies can develop strategic responses to this by focusing on location, working environment and local life science ecosystems, all of which has property at its heart. Over the next decade over 10million sq ft of strategic real estate could be developed to accommodate this demand. Big pharmaceutical companies are increasingly working alongside academics and start-up to boost productivity– sharing ideas, making use of the latest technological innovations and in some cases sharing resources. We’re finding that often, these co-working clusters are forming in urban location.”

Chris Walters, life sciences investor and developer lead, JLL, added: “Our team is working on some very exciting life sciences developments with the potential to transform the industry, especially in London, which has previously been poorly served. Despite this, over 700,000 sq ft of space has been taken by life sciences companies in London since 2017 and we expect that this will continue to increase as a more specialised life sciences real estate industry emerges in the UK.”

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.