The Greater Boston life sciences market's score was bolstered by a host of positive market trends including the region possessing the largest concentration of life science researchers in the US and boasting more than 3.75 million square feet of requirements. In addition, the Boston/Cambridge area has accounted for more than one-third of the nation's life sciences funding. East Cambridge, MA is seeing average asking rants at $70.12-per-square-foot and the vacancy rate there is just 0.8%.

“What's unique to our cluster from any other cluster and why we traditionally end up in this number one spot is basically the innovation that exists here,” says Matthew Powers, JLL's managing director of its New England life science practice. “It's all due in part to our ecosystem, which combines academia, healthcare, entrepreneurs, venture capital and industry inertia that no other city does.”

The report states that high costs and a shortage of laboratory space in infill locations are pushing life sciences developments and operations to the suburbs. However, access to leading research institutions and top talent limits how far companies will go beyond the core clusters.

Greater Boston, along with other top US life science clusters, continue to thrive, even as high-volume mergers, business swaps and divestitures reshape the industry's footprint. Large pharmaceutical firms in the US are expected to lose $17 billion this year in patent expirations, according to PwC. “Continuing patent expirations, the high cost of research and development and the diminished availability of strategic tax inversions have increased company shareholder pressure to maximize efficiency and generate profits,” JLL states in the report.

Following a record year for venture capital in 2015 when $10 billion was invested nationwide, investment activity continues to be strong in the life sciences sector. JLL notes that while venture capital has slowed in 2016, traditional institutional investors are now starting to flock to this sector. The JLL report points to the Morgan Stanley Real Estate Investing vehicle, which acquired two West Cambridge, MA properties this year from King Street Properties. “The significance of these acquisitions is not just that they were sold to a major institutional investor, but also that the properties were acquired as part of Morgan Stanley's Prime Property Fund, which primarily targets core U.S. real estate, and includes trophy office towers in New York City and Boston. This demonstrates a level of confidence and commitment not previously seen in the world of life sciences real estate,” JLL notes.

The largest institutional life sciences deal this year was Blackstone's purchase of BioMed Realty Trust. Another institutional investment deal of note this year was Longfellow Real Estate Partners' purchase of the 11-building Keystone Technology Park and the Venture Center building in Durham. Also, Chicago-based REIT Ventas broke into the life sciences arena with the $1.5-billioon purchase of Wexford Sciences' 23-property portfolio.

BOSTON—The Greater Boston market, which includes Cambridge, has ranked once again as the top life sciences market in the US, according to brokerage firm JLL.

Greater Boston easily bested the San Francisco Bay area for the top spot in the fifth annual JLL Life Sciences Outlook Report with a weighted score of 87.5. San Francisco came in second among the top life sciences clusters in the US with a score of 75.2. The JLL study ranked top markets by factoring in the cluster's life science employment concentration and growth, establishment concentration, venture capital funding, National Institutes of Health funding, market occupancy rate, asking rent and rentable lab supply.

While the number one ranking is prestigious, it is becoming old hat for Greater Boston since it earned the top spot the prior four years JLL has issued a life sciences outlook report.

The remaining top 10 life science markets were: 3. Raleigh-Durham, NC (60.7); 4. San Diego (58.3); 5. Seattle, Bellevue, WA (56.3); 6. Maryland suburbs/DC Metro (53.2); 7. Philadelphia (49.4); 8. Los Angeles/Orange County (44.7); 9. Westchester County, NY (41.2); and 10. New Jersey (40.8). It should be noted that New York City came in 11^th in the rankings with a weighted score of 34, down from its No. 5 ranking in JLL's 2015 life science rankings.

The Greater Boston life sciences market's score was bolstered by a host of positive market trends including the region possessing the largest concentration of life science researchers in the US and boasting more than 3.75 million square feet of requirements. In addition, the Boston/Cambridge area has accounted for more than one-third of the nation's life sciences funding. East Cambridge, MA is seeing average asking rants at $70.12-per-square-foot and the vacancy rate there is just 0.8%.

“What's unique to our cluster from any other cluster and why we traditionally end up in this number one spot is basically the innovation that exists here,” says Matthew Powers, JLL's managing director of its New England life science practice. “It's all due in part to our ecosystem, which combines academia, healthcare, entrepreneurs, venture capital and industry inertia that no other city does.”

The report states that high costs and a shortage of laboratory space in infill locations are pushing life sciences developments and operations to the suburbs. However, access to leading research institutions and top talent limits how far companies will go beyond the core clusters.

Greater Boston, along with other top US life science clusters, continue to thrive, even as high-volume mergers, business swaps and divestitures reshape the industry's footprint. Large pharmaceutical firms in the US are expected to lose $17 billion this year in patent expirations, according to PwC. “Continuing patent expirations, the high cost of research and development and the diminished availability of strategic tax inversions have increased company shareholder pressure to maximize efficiency and generate profits,” JLL states in the report.

Following a record year for venture capital in 2015 when $10 billion was invested nationwide, investment activity continues to be strong in the life sciences sector. JLL notes that while venture capital has slowed in 2016, traditional institutional investors are now starting to flock to this sector. The JLL report points to the Morgan Stanley Real Estate Investing vehicle, which acquired two West Cambridge, MA properties this year from King Street Properties. “The significance of these acquisitions is not just that they were sold to a major institutional investor, but also that the properties were acquired as part of Morgan Stanley's Prime Property Fund, which primarily targets core U.S. real estate, and includes trophy office towers in New York City and Boston. This demonstrates a level of confidence and commitment not previously seen in the world of life sciences real estate,” JLL notes.

The largest institutional life sciences deal this year was Blackstone's purchase of BioMed Realty Trust. Another institutional investment deal of note this year was Longfellow Real Estate Partners' purchase of the 11-building Keystone Technology Park and the Venture Center building in Durham. Also, Chicago-based REIT Ventas broke into the life sciences arena with the $1.5-billioon purchase of Wexford Sciences' 23-property portfolio.