The demand undergirding U.S. life sciences real estate is expected to remain steady for several years, buoyed by innovation and drug production, according to a report by Clarion Partners, “U.S. life sciences real estate: The long-term outlook remains bright amid robust secular demand,” which was published in the December issue of Institutional Real Estate Americas.
“Healthcare is one of the fastest-growing industries in the United States,” write the report’s authors, Tim Wang, managing director and head of investment research, and Julia Laumont, vice president, investment research. “An increasing number of institutional investors are attracted to life sciences real estate for its relatively stable cash flows, lower measured risk and growing investable market. Overall, the sector has demonstrated core-like investment characteristics and is less correlated to economic-cycle risks due to the more inelastic demand from the healthcare industry.”
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