Six life sciences real estate trends to watch in 2025
Evolution and innovation are critical to the field of life sciences, with each year bringing new challenges and breakthroughs. This holds especially true in the built environment — the labs, offices, and other commercial spaces that support this dynamic industry.
As scientific discovery and technology advance, new opportunities arise and business priorities shift throughout the global life sciences industry. Looking ahead to a new year, here are six real estate trends to watch in 2025:
1. Top-tier workspaces in prime locations will be in demand
Talent is the lifeblood of the pharmaceutical industry, and location and flexibility will be key talent drivers in 2025. According to JLL research, 57% of decision makers in the life sciences industry cited “attracting and retaining talent” as a top corporate goal over the next five years. To support this objective, business leaders are prioritising high-quality, amenity-rich workspaces in prime locations. Consolidation among labs and office facilities will lead to more intense market stratification in 2025, with high-quality facilities in prime locations absorbing demand before secondary spaces.
At the same time, life sciences firms are optimsing their real estate portfolios to enhance productivity and align with long-term corporate goals. 61% of life sciences respondents to JLL’s Future of Work survey allow employees to work at least one day a week at home, compared with 56% of all global respondents. Looking forward, roughly half of life sciences leaders expect the number of days spent onsite to increase, with some expressing preferences that colleagues work in the office three days a week. Still, this shift back to the office is driven more by individual choice, especially compared to trends in the financial services and technology industries.
In addition, many life sciences leaders are making strategic decisions to locate certain operations and facilities closer to home. Near-shoring these functions allows companies to optimise efficiency while maintaining control over critical supply chains.
2. AI will play a bigger role in scientific discovery and real estate management
Artificial intelligence (AI) is poised to accelerate scientific discovery, as well as play a growing role in the way life sciences organisations manage their real estate. As a result, life sciences firms are reevaluating their real estate portfolio strategies, location choices, and specific laboratory requirements. AI-driven drug discovery and research will lead to significant changes in lab space design, potentially requiring greater flexibility and facilities on the cutting edge of technological advancement. And as organisations mature, their real estate needs will become more complex, encompassing supply chain logistics, production capacity and workforce considerations. AI has the potential to help life sciences organisations navigate these complexities and challenges in 2025 and beyond.
JLL research found that 85% of life sciences respondents agree that AI could help to solve major real estate challenges — however, only 51% have a strategy in place for embedding AI in their commercial real estate activities. The industry still has a long way to go on this front, with the top five areas for automation potential including:
- Project design and construction
- Portfolio and location strategy
- Workplace design and fit-out
- Sustainability strategy
- Renewable energy supply
3. Scientific developments shift areas of focus and real estate priorities
In 2025, personalised medicine, AI advancements, and shifts in focus among pharmaceutical companies will exert significant influence on the needs and priorities of lab occupiers. For example, companies are increasingly investing in research and therapies to address obesity, Type 1 diabetes, and other metabolic diseases. GLP-1 drugs like Ozempic are reshaping both treatment paradigms and pharmaceutical revenues. Oncology and neuroscience also remain major targets for pharmaceutical research. In response, life sciences companies are reevaluating their portfolio strategies, location choices, and specific laboratory requirements to accommodate these evolving areas of focus.
4. Incubators and public-private partnerships will fortify life sciences ecosystems
The life sciences industry is known for its clusters. From incubators and start-ups to mature corporations, geographically adjacent commercial and academic institutions work cooperatively. These distinct entities operating in proximity help to create ecosystems that contribute to a thriving global industry. In 2025, incubators, universities, and public-private partnership (P3) initiatives will play an increasingly important role in supporting resilient life sciences ecosystems around the world.
Looking ahead, incubators will be a crucial element of life sciences ecosystems, nurturing early-stage companies amid a challenging funding environment. In addition, P3 models will create opportunities to maximise the economic value of scientific research, providing further support to the innovation districts and universities that drive scientific discovery and bring new pharmaceutical products to market.
5. Global collaboration via CROs, CDMOs, and CMOs will promote optimisation
To optimise their operations, pharmaceutical and biotech companies are increasingly outsourcing elements of drug development to partners around the globe. The rise of contract research organisations (CROs), contract development and manufacturing organisations (CDMOs), and contract manufacturing organisations (CMOs) shows no signs of slowing down in 2025.
The growth of CROs, CDMOs, and CMOs is fuelled by advancements in technology that facilitate seamless collaboration between organisations across international lines. By providing worldwide access to specialised expertise and infrastructure, these organisations allow life sciences companies to bridge resource gaps and more efficiently navigate the complex process of drug development. As companies determine which functions to outsource to a contract organisation, the amount and type of space they need will shift, emphasising the importance of strategic and adaptable real estate solutions.
6. Optimising operational costs will be top of mind
According to the JLL 2024 Future of Work survey, optimising costs is an increasingly important priority for life sciences companies: nearly half (47%) of life sciences respondents cited reducing operating costs as a short-term goal for their commercial real estate strategies, compared to 37% of respondents across industries. Between an oversupply of laboratory space in the US and increasing inventory reaching markets in the EMEA and APAC regions, landlords must demonstrate a holistic value proposition for their spaces to attract and retain tenants in the current market. Meanwhile, cost-conscious large corporate entities are reassessing their owned real estate portfolios to favour more energy-positive buildings for their R&D, manufacturing, and major in-house distribution sites.
In 2025, technology advances will drive new developments across the global life sciences industry, especially as pharmaceutical and biotech firms embrace AI. The evolution of technology will also support global collaboration and optimisation as companies make strategic location decisions to optimise their operations. And while technology is an undeniable catalyst for innovation, the industry still depends on the insights and discoveries of talented professionals. Companies will increasingly rely on prime locations, quality real estate assets, and updated facilities to attract and retain talent that will navigate the demands of an ever-evolving industry.
About the authors
Michelle Pattison is EMEA head of life sciences at JLL. With over 25 years of experience working across diverse roles across global FMCG corporate and two leading real estate firms, Pattison brings a valuable combination of perspective and experience across both business environments and various industry sectors. She thrives on strategic engagement, understanding client ambition and business objectives, and translating this into value-adding service delivery. Pattison is known for leading large business transformation programmes on a global scale, as well as advising clients on their strategic direction and plans for their teams. Her background lends to finding integrated, pragmatic solutions that are commercially sound and drive efficiency. She enjoys and is energised by the challenge of influencing stakeholders, understanding and aligning to business objectives, and leading people to drive exceptional results. Pattison holds a Bachelor of Commerce degree in Information Systems and Management from Rhodes University in South Africa. She lives in London and is actively involved in industry-led women’s networks and has keen interest in developing diverse talent and supporting diversity of thought and action in her working and personal life.
Kevin Wayer is division president of government, education, infrastructure, and life sciences industries at JLL. Leading a team of more than 4,300 professionals, Wayer oversees providing real estate services to life sciences companies and federal, state, county, municipal, education, transit, marine port, defense, and not-for-profit entities in the United States. Wayer is a member of JLL’s executive team that pursues and executes international public sector assignments in addition to serving on JLL’s Americas Work Dynamics Operations Committee. He also started the firm’s renewable energy and infrastructure business and sits on the global sustainability board. Wayer has led development and transaction teams that have served over 200 public-sector and life sciences clients across the United States, many under innovative, multiple-year, partnering-based contracts. He has also overseen similar client services in Korea, Canada, and Australia. Wayer earned an MBA (Finance) from DePaul University and a BSc (Accounting) from the University of Illinois. He passed the State of Illinois Certified Public Accountant exam. Wayer has been featured as a speaker and contributing source to Public-Private Partnership forums focused on housing, mixed-use, and historic redevelopment issues.
