Life Science Opportunities Are Spreading

  • Investors poured record venture capital (VC) funding into the life science industry in 2021. IPOs also set new highs.
  • National Institutes of Health (NIH) funding is set to rise in fiscal year 2022.
  • These factors are driving tremendous growth in both established life science hubs and numerous other markets.
  • Research and development lab and cGMP manufacturing spaces are setting new pricing records as real estate investors clamor to get into this asset class.
  • The future pipeline of new development is concentrated in Boston and the San Francisco Bay Area, suggesting that capital will continue to target the biggest markets in the U.S.

The life science industry shattered growth records in 2021. IPO numbers were off the charts, VC funding set new highs, and NIH grants increased, all creating unprecedented demand for life science properties. From research and development lab product to cGMP manufacturing spaces, tenant and investor demand has soared, mostly in the nation’s largest and most well-established life science hubs. Boston and the San Francisco Bay Area led the country in absorption, inventory, and VC funding, of which nearly 60% made its way to those two markets, per PitchBook. But other markets are aiming to make their mark as well.

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