Even when the global pandemic prompted many office tenants to evaluate their future office needs in 2020, there was almost no cooling off in the life sciences sector. The laboratory, doctor’s office and production area is growing rapidly, especially with the successful introduction of the new mRNA technology.
Cushman & Wakefield released an insightful new report, titled Life Sciences on the Rise, which details many key trends and data points affecting this critical sector, including education, finance, talent pool, and several real estate market trends. The report also provides further analysis on 17 life sciences markets across North America, including Denver, an emerging life sciences hub.
The main highlights of the report for Denver:
- The Denver market has solidified itself as an emerging life sciences hub, fueling growth and innovation through leading research institutes, federal laboratories, and the nearly 900 life science companies that call Denver home.
- Industry growth was driven by a strong STEM job, affordable taxes and incentives, and abundance of capital and funding from both the private and public sectors.
- Denver’s life sciences industry is largely made up of medical device and diagnostics companies, which make up 64% of the life sciences employment.
- The Denver market, which includes the flagship university of the University of Colorado systems at Boulder, is home to a vibrant startup community due to the region’s strong incubators and innovation centers.
- The lack of available supply has been a limiting factor in expanding life sciences and drug discovery activities in the Denver market, with the Novartis campus in Longmont viewed by many as a potential opportunity for laboratory clusters.
- The life sciences market continues to expand, with growth primarily concentrated in the submarkets of Boulder and Northwest in the suburbs.
- Laboratory vacancy in Denver between YE 2019 and YE 2020 fell to 18.1%, while rents rose to 15.70 psf NNN year over year.
- Denver life sciences employment has increased approximately 80% since 2001.
Download the full report here