Bioscience Is Creating a More Stable Market in Phoenix

Bioscience and life science are growing rapidly in Phoenix, and the industries are fueling local economic, job and population growth. In the long-term, they will also ensure more stability for Phoenix—an important characteristic for a market that was hit so badly in the last recession. It could also mean longer future growth for the market.

“For Phoenix, growth in the bioscience and healthcare industry means stable, quality jobs with defined career progressions for our residents and the many new people moving to the market,” Christine Mackay, director of Phoenix community and economic development at the City of Phoenix, tells GlobeSt.com. “Our home, Maricopa County, saw the greatest population increase numbers in 2016 and 2017. These new residents are able to find opportunity in this rapidly growing sector. Jobs have been growing 14% faster than the U.S. overall in bioscience and healthcare.”

The Wexford Science+Technology Phoenix has been a catalyst for growth in these industries. With a $77 million price tag, the 200,000-square-foot development in Downtown Phoenix will be anchored by ASU, which is expanding in the Downtown area. “Wexford brings to its first western U.S. site a vibrant, mixed-use, amenity-rich Knowledge Community,” adds Mackay. “Built on a foundation of research, discovery and entrepreneurial activity, Wexford will bring in businesses new to Phoenix and help incubating and fledgling companies find a thriving environment for growth. Wexford’s current developed markets, such as St. Louis, Philadelphia, Providence and Baltimore, have been transformed in part by what they bring to the table.”

Of course, the growth of these industries will have a major impact on commercial real estate in the Downtown Phoenix market. There has already been an increase in capital investment in bioscience and life science facilities. “Bioscience and healthcare properties are seeing significant Phoenix investments,” says Mackay. “On the Phoenix Biomedical Campus in Downtown Phoenix, the 30 acres and more than 9,000 jobs serve as strong anchor institutions. This is creating a dynamic workforce cluster in other employment corridors in the city. Phoenix has seen the most investment and interest in its urban core with education, research institutions and hospitals. Additionally, Mayo Clinic is doubling its size and partnering with Arizona State University for the future Health Solutions Campus. This major investment has piqued interest in the Desert Ridge area in north Phoenix.”

These industries also promise to improve the quality of life for Phoenix residents. Elected leaders in the city see that as a major benefit as well, helping to fuel population growth. “Phoenix leadership knows that all of this research improves health outcomes for our citizens and for everyone in the nation,” says Mackay. “In the long run, growth in the sector not only diversifies the robust Phoenix economy, it improves the community’s standard of living. We anticipate seeing tremendous growth over the next few years. Bioscience and healthcare projects under construction, in design and in the development pipeline represent approximately 4.2 million square feet of facility space, more than $3 billion in capital investment and 7,000 jobs.”