A new report from JLL outlines the increasing impact of quantum technology on the commercial real estate industry. Expanding this innovative multidisciplinary field would be a huge shot in the arm to grow the industry. As pilot research, the report brings together McKinsey and Pitchbook jury-exposed capital research. It shows that quantum companies brought in under $750 million in total revenue last year, but that new quantum startups raise around $2 billion in funding annually, illustrating investor excitement over the technology’s potential future applications.
According to the House report’s findings, private sector investments in quantum will increase exponentially to $20 billion by 2030. By 2035, annual revenue projections are expected to top an astonishing $100 billion. Either way, this regulatory and market shift presents an exciting opportunity for smart real estate developers and investors. They can benefit from the skyrocketing expansion of quantum labs around major U.S. hubs.
So far, the leading 20 global quantum markets have developed largely around national research facilities and colleges. It’s true that cities like Chicago, Boston, and New Haven are at the forefront of developing quantum technology. Colorado, Maryland, and Southern California are likewise rising as key epicenters in this dynamic field. Notably, PsiQuantum, a leader in the field, has chosen to open a facility in a former steel mill complex in Chicago, primarily funded by the state of Illinois. This key development highlights the accelerating trend of repurposing legacy industrial spaces to meet the needs of high-tech innovation.
Based on the findings in the JLL report, there are two possible trajectories for quantum real estate. The second trajectory is the creation of specialized quantum innovation hubs that would promote partnership and speedy development between industry, academia, and other players. These hubs would likely be located in close proximity to academic institutions and research labs, fostering collaboration between academia and industry.
The second trajectory is the more interesting one, of plugging quantum technology into our current urban fabric. Such an approach would not only drive the retrofitting of traditional office space or manufacturing facilities into operations that serve as long-term quantum computing homes. Consequently, companies are increasingly in search of space that’s already built-out to accommodate their sophisticated technological requirements. In turn, real estate developers need to change their playbook.
Investment tens of billions into quantum ventures. This acceleration is a testament to the unwavering conviction that exists surrounding the technology’s potential to revolutionize various industries including finance, healthcare and logistics. Industry is overwhelmingly focused on building quantum computing infrastructure that solves real, tangible problems. As they mandate, the need for facilities will increase, prompting further investments in commercial real estate.
The compelling JLL report goes on to highlight the crucial role that location will play in realizing the promise of quantum technology. Regions with abundant world-class research universities and technical know-how stand a far greater chance of luring the investment and talent we increasingly covet. Therefore, cities that position themselves as leaders in quantum research and development may experience accelerated economic growth and job creation.