JLL’s Latest Research Reveals The Roadmap To Making Life Science Assets More Sustainable
Sustainability factors key for attracting tenants and to the liquidity and pricing of life science assets
Latest research from JLL’s Life Science insight series, Achieving Environmental Sustainability, outlines ways in which life science occupiers, investors, developers, and landowners can begin to mitigate the climate impact of their assets.
In the UK, the life science sector is one of the fastest moving industries with 1.4 m sq ft of laboratory space built in the last five years. JLL predicts that this trend will continue with 11.4 m sq ft of lab space in the pipeline for the UK in the next five years. JLL’s research highlights that there is approximately £20bn of capital targeting life science assets in the UK with investors keen to secure these opportunities.
Mirroring the changes occurring across all real estate sectors, sustainability factors are becoming increasingly important to attracting tenants in the life science sector – especially as these occupiers tend have detailed specifications for their space. JLL also highlighted that sustainability credentials also influence the liquidity and pricing in real estate investments.
Currently, there is a clear lack of uniformity across certifications and targets, with no benchmarks for laboratory space. To make this asset class more sustainable, it’s essential for landlords, developers, and occupiers to set clear, uninform targets across the industry, providing a clear indicator on what sustainable life science real estate looks like.
Once benchmarks have been established and targets set, life science players can begin to mitigate the climate impact of their assets.
The Achieving Environmental Sustainability report highlights three key areas where climate impact could be addressed. JLL reveals decarbonisation as an essential step in the roadmap to making life science assets more sustainable. On average, laboratories generate over double the carbon emissions compared to offices and therefore, CO2 emissions should be reduced, negated (offset), or reversed. Reducing carbon emissions predominately involves lowering energy usage but is unlikely to curb operational carbon completely and should be used in combination with negation and reversion methods to achieve a Net Zero target.
Although carbon is top of mind when it comes to addressing environmental sustainability, the research cites water usage as another element, with labs using up to four times more water than offices. Measuring water usage for labs is often in the form of cooling or heating systems or just through tap usage. Incorporating as many methods to reduce water usage as possible will ensure operational and economic efficiency as well as environmental sustainability
JLL also reveals that maintaining a circular economy as another important step to mitigating the environmental impact of life science assets. This is the concept of keeping materials and products in use, recycling all waste, and investing in regenerating natural systems. For life science this means a focus on correct waste disposal and recycling and is primarily driven by good management practices.
Chris Walters, Head of UK Life Sciences at JLL said, “Life science occupiers are some of the most innovative, forward thinking companies globally and their real estate needs to reflect this, both in design and operationally. Life science companies must have a sustainability strategy that reflects their brand and given the fast-growing nature of the industry, sustainability is key for both occupiers and investors.”
Emma Hoskyn, UK Head of Sustainability at JLL added, “To succeed and thrive, all businesses need to have strong sustainability targets, including those in the life science sector. Whilst there is still a long way to go, there has never been a more appropriate time to take on the challenges and change. Occupiers are now after real estate that will complement their sustainability strategies and through mitigating the environmental impact of their assets, landlords and investors can ensure that they are attracting the best tenants.”
