Other sectors may be facing rising interest rates and inflation, but sales and supply data for the growing life sciences sector have yet to show signs of improvement.
A new report from Commercial Edge shows that the average sales price for a life sciences property will be $645 per square foot in 2022, which is 150% higher than the overall average price per PSF for shared offices. Buildings that qualify for redevelopment also fetch higher prices; for example, DivcoWest bought a 138,400-square-foot site in south San Francisco from Johnson & Johnson for $164.5 million and renovated it "on the fly." turning the building into a laboratory.
Developers are struggling to build enough space to keep up with demand. In general, about 22 million sq. San Diego was second with eight lots, 2.9 million square feet, followed by San Francisco (10 lots, 2.6 million square feet). The third market, meanwhile, is emerging as a viable contender, with PNB and Montgomery Street Partners recently announcing they will develop the 365,000-square-foot Coal Creek Innovation Park, Boulder County's first speculative life sciences property in Colorado. And in the residential community of Maricopa outside Phoenix, S3 Biotech is developing 2.5 million square feet of space that will include life sciences, medical offices and exercise.
According to CommercialCafe, life sciences employment in 2021 was highest in Boston (23,900 jobs), New York (18,100) and San Francisco (14,200), while the metro areas with the most STEM workers last year were in New York (515,540) and In Armenia. Washington. . It was DC (364,140), Los Angeles (342,870) and San Francisco (289,960).
According to CBRE, growth in the life sciences sector has outpaced what are typically considered "prime markets". Nashville leads the United States in the percentage of life science job growth, while Houston has a high percentage of graduates and quality. affordable offers. Since 2001, life science jobs have grown 79% to 500,000, according to the company.