AI and Biotech: The Next Big Wave in Life Sciences Real Estate
Artificial intelligence isn’t just transforming software—it’s reshaping biotech and life sciences real estate across the Bay Area.
According to Healthpeak Properties, one of the region’s largest biotech landlords, AI-driven biotech companies are fueling new demand for space that’s far more than just office-based. These hybrid firms require a 50-50 blend of lab and office environments—spaces that support both computational research and hands-on scientific development.
“The notion that they only need office space is just not correct,” said Healthpeak CEO Scott Brinker, during the company’s Q3 earnings call. “We view it very positively.”
Where Science Meets AI
Healthpeak, a Denver-based REIT, oversees more than 6 million square feet of biotech properties in South San Francisco and Brisbane, including the Cove at Oyster Point, Vantage, Pointe Grand, and The Shore at Sierra Point. The company’s portfolio sits at the center of an evolving convergence between tech and biotech—where AI is accelerating everything from research to clinical trials.
Major players are already leading the way. Genentech has partnered with Nvidia to use AI for antibiotic discovery, while Eli Lilly and Nvidia recently unveiled what they call the world’s most powerful AI “factory” for drug development. These alliances are blurring industry lines, creating opportunities for real estate that can flex between computational modeling and laboratory work.
A Faster Path to Innovation
The implications for biotech are profound. AI can shrink drug development timelines from five to seven years down to as little as one, making it a critical differentiator for companies racing to market. This efficiency is also attracting new funding—AI-enabled life sciences firms are finding it easier to raise capital, even as traditional biotech investment slows.
Healthpeak’s perspective highlights a broader shift: the next phase of biotech real estate won’t just house scientists—it will house algorithms, too. The intersection of life sciences and AI is creating a new class of tenants that demand both lab functionality and high-performance workspace.
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