Growth of Medtech, Biomanufacturing Continues to Provide Real Estate Opportunities, JLL Says
(Image courtesy of JLL)
JLL, Chicago, released additional analysis on specific growth in the life sciences industry, pinpointing the medtech and biomanufacturing sectors as benefiting nearby markets.
“The prospects and growth potential within the medtech and biomanufacturing sectors in relation to life sciences real estate are numerous,” said Travis McCready, Head of Life Sciences, Americas Markets, JLL. “Medical device and testing companies hold a prominent position within the life sciences industry, and biomanufacturing plays a crucial role in the lifecycle of therapeutic companies. Considering the substantial investments required and the crucial role of manufacturing operations in a company’s success, it is crucial to carefully select locations and sites that offer long-term value and optimal utilization.”
JLL identified the key markets for medtech in its recent 2023 Life Sciences Industry and Real Estate Perspective.
The sector includes medical devices, diagnostics, digital health solutions and other facets of personalized medicine.
Boston has the most aggregate medtech employment at 40,433. But Orange County, Calif., has the highest density of medtech employment, at 1.78%. Minneapolis has the second highest employment and employment concentration.
San Diego, the San Francisco Bay Area and Salt Lake City also serve as key medtech markets. JLL pegged Memphis, Tenn., New Haven-Hartford, Conn., Boulder, Colo., Sacramento and Pheonix as markets to watch.
Biomanufacturing, which includes the production of biologics and cell and gene therapies, has its highest employment in New Jersey, at 24,428. Other key markets include Raleigh-Durham, N.C., Philadelphia, Boston and the San Francisco Bay Area.
New York City has the largest number of companies conducting ongoing phase 2 and phase 3 clinical trials, which JLL said is a lagging yet leading indicator for the need of more biomanufacturing space.
Boulder, Colo., also has a strong biomanufacturing employment concentration, including recent expansion. And other markets to watch are the Washington, D.C./Baltimore area, San Diego, Chicago and Miami.
