Given that the cost of developing and commercializing a new medicine or device can cost billions, the life sciences industry historically has not viewed real estate as a major cost center. However, many organizations now recognize that inefficient real estate can reduce their return on investment, while smart location decisions create value. They’re focusing on strategic investments that directly add value, such as state-of-the-art laboratory spaces or revenue-producing manufacturing facilities.

At the same time, many organizations are taking a closer look at their underutilized administrative space to optimize their real estate portfolios. Many are exiting and consolidating administrative space, directing the savings to workplace improvements or the core scientific mission.

With increasing pressure to uncover the next blockbuster treatment, many biopharmaceutical and medical device companies are outsourcing real estate and facilities management to become more agile and sharpen their focus on core scientific functions. 

Centralized facilities procurement and smart energy management strategies, for example, reduce operating expenses. Furthermore, a facility management provider specializing in life sciences will use next-generation building and equipment maintenance practices. Such strategies prevent research and production disruptions while reducing capital expenses by extending equipment life. In addition, an outsourcing partner can help create productive workplaces that attract and retain talent — and inspire and support employees bringing new products to market.

It’s important to select your real estate landlord or operating partner wisely. They must have deep technical expertise to provide a best-in-class and resilient environment that empowers you to meet your scientific mission. A strategic relationship will create flexibility to meet the demands of a rapidly changing market and your company’s growth. 

Creating a proactive facilities management strategy can ensure your real estate portfolio is as efficient as possible and can even present an advantage during M&A. As large biopharmaceutical companies acquire emerging innovators, an integrated facilities management partner can quickly add resources to meet the tight due diligence timelines.