March 7, 2019
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 several industry hubs for outsized growth, according to a new report from CBRE. That growth is expected to span nationally from cornerstone markets such as Boston to emerging hotspots like Seattle.
Numerous indicators point to robust expansion for the industry, including the 86% 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. Life sciences lab space under construction in the industry’s five largest U.S. markets expanded by 101% last year to six million square feet.
That momentum has several markets ascendant on CBRE’s ranking of the top 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.
“Multiple demographic, scientific and financial factors have propelled life sciences into growing faster than most other industries in the early part of this century, and many U.S. markets are well-equipped to facilitate and capitalize on that growth,” said Ian Anderson, CBRE Director of Research and Analysis and primary author of the report. “Those likely to stay at the top of that list, or to rise on it, have an uncommon combination of health institutions and universities, a qualified workforce, a pipeline of industry funding, an ample base of lab space, and a solid technology industry to partner with life sciences companies.”
Top 10 Established Life Sciences Markets
1.) Boston-Cambridge (pictured)
2.) San Francisco Bay Area
3.) San Diego
4.) New Jersey
6.) Washington, D.C.-Baltimore
7.) New York City
9.) Los Angeles
Top Emerging Life Sciences Hubs
5.) St. Louis
7.) Dallas-Fort Worth
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