Report Says Life Science Sector Boosting Real Estate Demand

23 Jul, 2007, New York, NY

White paper released on real estate implications of the sector's growth; Global Life Science Practice Group launched to serve industry-specific requirements

In conjunction with the launch of a Global Life Science Practice Group, Cushman & Wakefield today released a comprehensive report on commercial real estate implications of the growing life science sector. The report anticipates continued growth for the sector and increased demand for life-science specific real estate in several major U.S. markets.

The report, "Life Sciences Sector Drives Real Estate Growth," was produced by Cushman & Wakefield's Research professionals Maria Sicola, Rick Cleveland and Mark Urbanowicz and is based on published and proprietary market data with input and additional analysis from principals of the firm's newly formed Global Life Science Practice Group.

According to Ms. Sicola, executive managing director and head of Cushman & Wakefield Research Services in the U.S., major findings of the report point to strength in the life science sector overall, including an abundance of capital earmarked for expansion and increased corporate activity, as well as the emergence of life science “clusters” in select U.S. markets that have attracted significant numbers of firms to specific locations. All of this, said Ms. Sicola, accounts for "a noticeable increase in demand for properties catering to life sciences – from investors and companies."

The life sciences sector has benefited from strong demographics, including the aging baby-boomer population in the U.S., technological advances in research and development and increases in prescription drug spending. These trends are positioning life science assets for long-term growth, according to the report, based on sector growth and the fact that life science firms typically sign long-term leases.

The report also cites growing investment demand for life science properties. In 2006, 227 life science related assets traded for a total of $5.1 billion, up from $601 million in 2002, according to data compiled by Real Capital Analytics. San Francisco remains the nation's top life science market, with up to 30 million square feet of inventory. The report also looks at major life science hubs including San Diego and the greater Philadelphia metropolitan region, as well as developing life science markets including the New York metro area and its surrounding suburbs, suburban Maryland, Raleigh-Durham, N.C., Puerto Rico, Seattle and metro Los Angeles.

Cushman & Wakefield's Global Life Science Practice Group brings together brokerage specialists and consulting partners to meet the unique requirements of companies in the life sciences industry. Members of the group have developed broad expertise in the life sciences arena, demonstrating an understanding of the industry and its specific needs, how the industry interacts with government agencies for funding and incentives, and an ability to help clients identify and implement real estate solutions that support core financial and operating strategies.

Members of the Global Life Science Practice Group include Executive Director Christopher Kinum, East Rutherford, N.J.; Executive Director John Minervini, Los Angeles; Executive Director Mark Winters, Boston; Senior Director Thomas Giannone, East Rutherford; Senior Director John Minervini, Los Angeles; Partner Nick Giraudeau, Madrid, Spain; as well as Consulting Partners Jim Reeb, Bob Hess, France Houdard and Matt Jackson.

A complete copy of the 22-page report may be obtained by email request to rick.cleveland@cushwake.com.

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