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 – including Philadelphia – for continued growth, according to a new report from CBRE.
Numerous indicators point to robust expansion for the life sciences 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.
That momentum has several markets ascendant on CBRE’s ranking of the top established and emerging life sciences hubs. In Philadelphia, for example, funding surged in 2018 to its highest level since 2007, which will have a significant impact on local life sciences employment. Much of that momentum exists in Downtown Philadelphia, including the recently completed 3675 Market Street, which is anchored by the region’s first location of the Cambridge Innovation Center. Other success stories were expansions by Spark Therapeutics at Brandywine’s Schuylkill Yards development and WuXi AppTec at the Navy Yard.
“Philadelphia is undoubtedly one of the nation’s key clusters fueling the life sciences revolution,” said Ian Anderson, CBRE Director of Research and Analysis and primary author of the report. “At the same time, the region has been lagging some of the exponential growth witnessed in hubs like Cambridge. Nonetheless, 2018 was a year of huge progress that should translate into accelerating future growth.”
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.
CBRE analyzed and ranked the top established life sciences hubs by weighing four main criteria for each market: number of scientists in key industry categories, industry funding for local life sciences companies, size and long-term growth of their life sciences workforce, and their inventory of industry lab space.
Top 10 Established Life Sciences Markets
| 1.)Boston-Cambridge | 6.) Washington, D.C.-Baltimore |
| 2.)San Francisco Bay Area | 7.) New York City |
| 3.)San Diego | 8.) Philadelphia |
| 4.)New Jersey | 9.) Los Angeles |
| 5.)Raleigh-Durham | 10.) Chicago |
To view the full report, click here.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
