Boston is the top spot for life sciences companies this year, according to a new report from CommercialCafe, earning top marks for its large life sciences workforce and for having the largest real estate market for the subsector.
Life sciences accounted for 24.8 million square feet of office space in Boston, with 14 million square feet of that LEED-certified. CommercialCafe analysts say the area is “poised for significant further expansion,” with an additional 23.8 million square feet of upcoming projects under construction.
Boston also ranked sixth of the markets the firm surveyed for life sciences educational attainment, with more than 840,000 residents over age 25 holding at least a bachelor’s degree in science, engineering, or related fields.
San Francisco followed behind in the #2 spot. The Bay Area is home to the largest talent pool among cities CommercialCafe studied and is the third-largest life sciences workforce of the metros the firm studied. Nearly 7.3% of office space in the city was home to life sciences companies at a total of nearly 14 million square feet. Nearly 11 million square feet of new life sciences office projects are in the works in the city as of May 2022.
San Diego came in at third place with the top score for the highest share of life sciences properties out of the total office space, with 12.3 million square feet of life sciences stock accounting for nearly 11% of the market. The city was followed by New York, which logged the highest score for life sciences educational attainment, with nearly 2.5 million residents holding degrees in science and engineering and/or engineering-related fields.
Rounding out the top ten were Washington, D.C., Chicago, Philadelphia, Raleigh, Seattle, and Houston.
Recent research from CBRE also points out that life sciences growth is also pushing past the typical coastal markets: Nashville is leading the way in the US in terms of percentage growth of life sciences jobs, for example.
“There is a conventional view of life sciences that emphasizes large lab markets such as Boston, the Bay Area and San Diego…we take a broader view, analyzing life sciences workforces across the U.S. as well as the connection that talent has to how – and where – companies grow,” said Matt Gardner, CBRE Americas Life Sciences Leader. “It’s also important to keep in mind that the life sciences industry encompasses more than drug development in the lab. Major growth drivers for life sciences – even amid market headwinds – include personalized treatment, advanced materials and future foods.”