The life sciences sector is attracting more and more attention from real estate investors. This sector includes a wide range of industries, from
pharmaceuticals and biotechnology to medical devices and healthcare - all of which are expected to grow rapidly in the coming years, driven by advances
in medical technology and an ageing population. However, that does not mean that every life sciences location makes a worthwhile investment or is even
investable. It is incredibly important to be selective and attentive when seeking those life sciences locations (clusters, science parks and others) that have the potential to provide the most attractive risk-adjusted returns. The challenge is not easily met, because life sciences real estate in Europe has not yet matured as an asset class.So, what drives success in a life sciences cluster? This is such an important and thorny question that we propose to tackle it over two issues of the magazine. In this issue, we examine the term “cluster” and explain its nuances using European examples. We also identify the key drivers of cluster success. In the next edition of the magazine, to be published on 30 September 2022, we will do a deep dive into the data sources that can be used to predict which clusters will be most successful. The current article is structured as follows: first, the term “cluster” is explained in generic terms. Then we group clusters into three broad categories, giving examples of each type. The article concludes by listing the five principal drivers of success and mentioning the types of data that can reveal the likelihood of an individual cluster’s future success.

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