Part 5 of 8: 2014 Outlook for Biotechnology
Demand for life sciences-purposed laboratory real estate remains robust in the leading centers of biopharmaceutical research, particularly in the Greater Boston and San Diego areas. Rather than becoming broadly diffused and scattered, investment in life sciences-related organizations appears increasingly focused in the areas with the highest concentration of relevant skills, educational institutions and other related infrastructure.
A very low unemployment rate among biotechnology research skilled workers in the nation’s life sciences “clusters” has given rise to a hypercompetitive environment among biotech companies, in part resulting in a flight to quality. Companies have been leasing space in the best buildings, in part to assist with recruitment and retention.
Continued private sector investment, a moderation in NIH funding cuts as dictated by the “Sequester,” and the most robust market for Initial Public Offerings of biotech companies in history, as seen over the past twelve months, will likely lead to continued demand for life sciences real estate into 2014.
As senior vice president of research for Transwestern│RBJ, Brendan Carroll publishes the most complete line of research reports in the Greater Boston area. With more than 10 years of commercial real estate research experience, he previously served in the investment banking industry.