Vacant life sciences space up in Q2 2023

S&P Global – July 28

The average vacancy rate for laboratory and research and development space across the top 13 U.S. life sciences markets stood at 9% in the second quarter, up more than four percentage points from a year earlier and more than two percentage points higher than the previous quarter, according to a report from CBRE, Inc. The sharp rise in vacancy was partly due to the addition of 3.4 million square feet of new space in the second quarter, 45% of which were preleased. Boston-Cambridge, San Francisco Bay Area, and San Diego — the largest life sciences real estate markets in the U.S. — had a combined 1.5 million square feet of negative net absorption in the second quarter, CBRE said.

News

Pasadena could lure life science labs to make up for office, retail space losses

Pasadena Star-News – August 11

In hopes of turning vacant retail and office spaces into sites for future life science facilities, the Pasadena planning commission held a study session in mid-August to discuss potential zoning text amendments that might attract more research labs and eventually transform the makeup of the city’s economy. To help attract these research facilities, the city is considering increasing building height allowances and rooftop equipment access, reducing parking space requirements, and exemption from ground floor public space requirements.

Hospital building spree could turn Irvine into nation’s next big health brand

The Orange County Register – July 23

Orange County philanthropists, Diana and David Sun, are donating $50 million toward what will be known as the Sun Family Campus at Hoag Hospital. The gift is part of the hospital’s $1 billion Irvine expansion, which is slated to open in 2025. Over the next three to five years, a half-dozen health brands will either expand or break ground in Irvine, creating several million square feet of new hospital and health education space, 350 new care beds, and thousands of high-paying new jobs. Given the booming healthcare expansions as well as the city’s health and biotech presence, Irvine is on track to becoming a national brand in healthcare — a hub of sorts, where all slices of health are concentrated in a single city.

Biopharma sector still growing despite layoff wave, Stifel report finds

BioPharma Dive – August 7

The number of biopharmaceutical jobs is growing despite the sector’s market turbulence, but the gains are concentrated in larger companies, according to a new analysis from the investment bank Stifel. The data, published in the firm’s latest biotech update, shows that employment at large pharmaceutical and biotech companies has climbed since early 2021, and that the ranks of mid-sized drugmakers are increasing fastest of all. However, job totals among smaller companies are down.

Deals

Huge Berkeley life science project pushes ahead with real estate deals

The Mercury News – August 1

A California real estate group has bought more than a dozen parcels on a choice Berkeley site where the organization aims to develop a vast innovation and life sciences campus, public records show. The development firm paid nearly $49 million for 16 parcels in western Berkeley. The new owners of the site are operating as Forge Development. The development will replace sites that include the former operations of Pacific Steel Castings Steel Mill and Berkeley Forge & Tool. Berkeley Forge is the anticipated name of the project.

Seattle startups move into growing science cluster in South Lake Union

GeekWire – August 1

A new science cluster is growing in Seattle. The two 15-story towers of Dexter Yard, with 528,000 square feet of office and lab space, are starting to fill up with biotech companies and an outpost of the Allen Institute. Dexter Yard sits just across Lake Union from a complex of life sciences buildings anchored by Fred Hutchinson Cancer Center. The Seattle area has 1.6 million square feet of life sciences space under construction, with 53% pre-leased, according to a recent report from CBRE.

LG pharma group buys 15 acres in Solano County

North Bay Business Journal – August 9

LG Chem Life Sciences Innovation Center Inc. purchased 15.04 acres of vacant land from an affiliate of Agenus for $13.1 million, or $20.05 a square foot, on Dec. 30, 2022, according to a recent city announcement and public records. LG Chem is the fifth biotechnology-related venture to put down roots in Vacaville since the city launched a concerted effort three years ago to attract life sciences manufacturing companies, according to Don Burrus, city economic development director.

Moderna leases 54K-SF in Seattle, continues West Coast expansion

Connect CRE – July 31

Biotech Moderna has leased nearly 54,350 square feet of space at a Seattle office building Hill7, reported the Puget Sound Business Journal. Located at 1099 Stewart Street, Hill7 is an 11-story, Class A office building in the city’s Denny Triangle neighborhood. The vaccine and biopharma company hopes to tap into Seattle’s tech talent pool, and the firm also plans to hire approximately 2,000 new employees globally by the end of 2023.

Trammell Crow, CBRE IM break ground on San Francisco life science project

Commercial Property Executive – July 21

The joint venture of Trammell Crow Co. and CBRE Investment Management has broken ground on a 234,000-square-foot life science development in Redwood City. DGA is the architect of record, while Truebeck Construction serves as general contractor. Completion is expected during the fourth quarter of 2024.