This year, $10 billion has already been spent on life science buildings — and there’s no sign the boom is slowing. Even as COVID-19 wanes in urgency, the sector seems to have plenty of demand driving it forward.
National in scope
- Vaccine developers
- Bio-tech startups
- Bespoke gene therapy companies
- Drug discovery companies
All of which require significant square footage and niche facilities.
A safe investment
While the need for space is real, the kerosene on the fire has been the pandemic. Hospitality, retail, office and multi-family real estate were all significantly depressed by the year-long shut down. However, life sciences have stayed open and demand has continued to grow.
It should be noted, though, that many new projects are breaking ground without tenants lined up. There’s a chance that we’re nearing a state of oversupply. However, investors that spoke with Bloomberg recently don’t sound particularly worried on that front.