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PYRINAS NEWSLETTER | JUNE 2020
How COVID 19 Reshapes the Real Estate Landscape Globally
and Brings Novel Opportunity

COVID-19 has indisputably hampered the realm of commercial real estate across the world; it also, paradoxically, generated a novel opportunity for life science real estate and its progressive evolution over the course of the pandemic. Pyrinas recognises this widespread pandemic as a wake-up call over the prevailing shortage of life science research spaces. Several pharmaceutical companies from the US also reveals insufficiency over access to and supply of biotech laboratories and research bases (Berr, 2020), thereby influencing the status of global cure-search. In this newsletter, we discuss how COVID 19 has reshaped the real estate landscape globally into a propitious asset and the promising growth of life science real estate in a long-term prospect.

New Trends under Pandemic:
Implications and Potentials on Real Estate

The pandemic has facilitated the cultivation of new trends with potentials on transforming real estate market trend. For instance, there has been a significant impact on all aspects of people’s lives with a third of world’s population across the world now living under some sort of lockdown quarantine. Demand for online shopping and home office space has increased tremendously, and ongoing trend for the densification of work and living space is now under scrutiny. This raises awareness from market players in evaluating valuation and market potentials of real estate development (Sucoff and Welch, 2020).

Epiphany over Long-term Unmet Needs of Biotech-life Science Real Estate

We delved into a conversation last year that there has been a long-term unmet demand from life science sectors for state-of-the-art labs, and the bottleneck marks at the current vacant rate and availability for advanced lab space (Khatri, 2019). In an article published by Sucoff and Welch this year, they mentioned that the cost and availability of these state-of-the-art labs are extremely scarce and it directly influenced the research and engineering of COVID-19’s cure (Korbel, Stegle, 2020). For example, to maintain sterility and safety, life science research often takes place in controlled environments. Especially for airborne transmissible pathogens like COVID-19, specific type of lab characterised as “Biosafety Level 3” (or BSL-3) are needed since it is constructed with specific ventilation system, temperature adjustment and tolerance, as well as related humidity, utility and energy requirements.

Pyrinas' Choice: Investment in Biotech and Life Science Real Estate

With years of real estate experiences and connections across the US and south east Asia, Pyrinas envisages the investment in biotech real estate deems a promising return. At Pyrinas, we bring with you diverse investment opportunities across different real estate classes in various mature markets across the globe. We seek to identify compelling investment opportunities utilizing the local market knowledge gained from the firm’s investment teams. Find out more about us Here.

Bibliography

  • How COVID-19 is Transforming Life Sciences Real Estate. (2020). Andy Sucoff and Eamon Welch. Retrieved on 28 May 2020. URL: https://www.globest.com/2020/05/11/how-covid-19-is-transforming-life-sciences-real-estate/
  • Jitender Khatri. (2019). Renting shared lab in suburbs is a smart idea for biotech startups. Retrieved on 28th October 2019. URL: https://www.linkedin.com/pulse/renting-shared-lab-space-suburbs-smart-idea-biotech-startups-khatri
  • Korbel, J. O., & Stegle, O. (2020). Effects of the COVID-19 pandemic on life scientists. URL: https://genomebiology.biomedcentral.com/articles/10.1186/s13059-020-02031-1
  • Berr, Jonathan. (2020). Coronavirus Research And Development Driving Even More Demand For Boston Lab Space: https://www.bisnow.com/boston/news/life-sciences/boston-life-sciences-firms-need-covid-research-lab-space-104054?utm_source=CopyShare&utm_medium=Browser. Retrieved on 1st June, 2020. URL: https://www.bisnow.com/boston/news/life-sciences/boston-life-sciences-firms-need-covid-research-lab-space-104054


At Pyrinas, we bring with you diverse investment opportunities across different real estate classes in various mature markets across the globe.We seek to identify compelling investment opportunities utilizing the local market knowledge gained from the firm’s investment teams.

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