CBRE Report: Strong Growth Of Life Sciences Sector Favors Real Estate In Select Markets
Updated: May 18, 2019
March 6, 2019 by Kris Hudson
CBRE Analysis Finds Boston, San Francisco, San Diego Remain Unrivaled Life Sciences Capitals; Fast Risers Include Seattle, Houston, Austin
The U.S. life sciences industry and the real estate that it occupies have ridden a wave of momentum into this year that has positioned various industry hubs, from cornerstones such as Boston to emerging hotspots like Seattle, for outsized growth, according to a new report from CBRE.
Numerous indicators point to robust expansion for the industry, including the 86 percent increase in venture-capital funding for U.S. life sciences companies to $15.8 billion for the year ended in September from the previous year. Additionally, life sciences lab space under construction in the industry’s five largest U.S. markets expanded by 101 percent last year to 6.0 million sq. ft.
" CBRE’s report focuses on the human life-sciences industry, which encompasses manufacturing, testing and research-and-development work in the fields of biotechnology, pharmaceuticals and medical devices."
That momentum has several markets ascendant on CBRE’s ranking of the top established and emerging life sciences hubs. New York City, for example, stands to nearly double its inventory of lab space over the next two years, has posted the strongest growth in funding from the National Institutes of Health among major life sciences hubs, and boasts one of the highest concentrations of specialized life scientists.
Top 10 Established Life Sciences Markets
1) Boston-Cambridge 2) San Francisco Bay Area 3) San Diego 4) New Jersey 5) Raleigh-Durham 6) Washington, D.C.-Baltimore 7) New York City 8) Philadelphia 9) Los Angeles 10) Chicago