Between COVID-19 and new innovations across the pharmaceutical industry, demand for life sciences space has never been higher. This is good news for Phoenix, which is in a prime position to support this lucrative business sector.
According to JLL’s new Life Sciences Outlook, growth in the prescription drug market is expected to surpass $1 trillion by 2022, benefiting in large part from pandemic-related tailwinds. This is combined with accelerations in the life sciences industry, particularly among life-enhancing pharmaceuticals and medical device sought out by millennials at the peak of their earning potential.
Although the life sciences have traditionally centered on coastal markets (Boston, San Francisco and San Diego captured 70% of all VC investment in 2019), more and more life sciences companies are moving to the nation’s interior — to markets like Phoenix offering a highly educated workforce and growing research community.
That creates demand for institutional-grade life sciences real estate.
An example of this is Workspace (www.workspaceproperty.com), a full-service real estate property company that recently selected JLL to market its 1.3-million-square-foot metro Phoenix portfolio of plug-and-play office, industrial and life sciences space.
Located primarily in Cotton Center, just south of Sky Harbor Airport and in the Elliot Road/I-10 corridor, Workspace has one of Phoenix’s largest concentrations of buildings that allow life sciences tenants to adapt and expand over time.
As the Phoenix life sciences market grows, spaces like these will be critical, allowing companies to quickly establish a footprint while also solving for one of the industry’s greatest challenges —being able to grow without relocating. Considering the time and expense that life sciences organizations put into their lab, clean room and research build-outs, being able to grow within the same complex, without having to abandon and rebuild, is a game-changer.
Mark Gustin is managing director of JLL.
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