Beyond Kendall Square and Silicon Valley, a new wave of life science innovation is developing across the United States. Fueled by converging industries, rising talent pools, and cost-effective locations, several emerging hubs have presented worthwhile opportunities for forward-thinking real estate investors. Savills explores four fundamental drivers that are shifting the life science narrative. 

The Convergence Revolution

Unlike the siloed industries of the past, life science is producing groundbreaking advancements by integrating a multitude of sectors:

• Artificial intelligence (AI) plays a significant role in revolutionizing drug discovery, clinical trials, and personalized medicine.
• Precision engineering is enabling the creation of biocompatible materials and microfluidic devices.
• Big data is driving cutting-edge research in genetics, epidemiology, and public health.

Tech Talent: The Leading Indicator

This convergence would not be possible without a skilled workforce that is willing to migrate to these emerging hubs outside of the usual tech epicenters. Tech talent, including software engineers, data scientists, and AI specialists, are discovering advantages such as lower cost of living, proximity to leading universities and research institutions, as well as a vibrant, collaborative community open to innovation.

New Hubs on the Rise

The most promising examples of emerging life science hubs have deep pools of tech talent and are primed for substantial growth, including: 

• Tampa, Florida: Moffitt Cancer Center's Speros FL project consists of 775 acres (500 developable) and includes an ambitious plan that will amass 14,000 jobs and $1.6 billion in combined public and private investment in Phase 1A alone. This massive investment reflects the potential of Speros FL to attract leading pharma companies and startups seeking cutting-edge research facilities and collaborative environments.
• Houston, Texas: Levit Green, developed by international real estate firm Hines, was master-planned in 2018 and broke ground in 2021. Sitting on 53 acres, it is strategically adjacent to the Texas Medical Center. Levit Green integrates state-of-the-art labs with retail and green spaces, fostering a dynamic community where innovation can thrive. 
• Phoenix, Arizona: The Mayo Clinic's bold acquisition of 228 acres surrounding its existing Phoenix campus in December 2021 marked the beginning of Discovery Oasis. Coined as a “biotechnology corridor of collaboration,” it comprises 3.3 million square feet of space, projects 5,000 jobs, and a $1 billion investment. Discovery Oasis will become a major life science hub in the Southwest.
• Atlanta, Georgia: Science Square, which broke ground in Q3 2022, is revitalizing 18 acres adjacent to Georgia Tech's campus. With 5,000 jobs projected and $708 million in NIH funding, Science Square illustrates the promising future of this hub. Of the 2.2 million square feet, 1.8 million square feet will be dedicated to lab and office space. Science Square will also benefit the region by providing access to a diverse talent pool and esteemed institutions. 

Shared Labs and Collaboration

As more hubs are embracing shared lab and co-working spaces, it creates an ideal environment for both tech startups and life science companies. These models are cost-effective and collaborative, which accelerates innovation through the cross-pollination of ideas. Venture capital firm Portal Innovations is helping shape the landscape by taking the shared lab concept to the next level. Several attractive features of its labs include:

• State-of-the-art wet and dry lab facilities customized to diverse company needs.
• Flexible lease options and membership models, allowing companies to scale easily.
• Expert mentorship and access to a network of investors and partners.
• A vibrant community atmosphere that fosters collaboration and knowledge sharing.