Life Science: Great Promise & Rapid Growth
One of the country’s leading life science hubs, Philadelphia is home to world renowned academic research institutions, hospitals, large pharmaceutical companies and innovative biotechnology startups. The region’s rich history in medical discovery, robust biomedical employment base, and one of the largest recipients of grant monies nationally, have made Philadelphia a leader in life science research, with core concentrations in gene and cell therapy, biotechnology, medical devices, pharmaceuticals, diagnostics and health IT. All this, coupled with Philadelphia’s relative affordability and high quality of life make it a choice location for life science companies, which is why 80% of U.S. pharmaceutical and biotechnology companies have a presence in the New Jersey, Pennsylvania and Delaware corridor. The region is the third largest recipient of NIH grants nationally, with three-quarters of the $1.0 billion in annual funding going to the academic and research institutions in University City. These universities and hospitals are investing in tech
transfer and incubation programs, which are spinning off successful biotechnology and life sciences startups like Spark Therapeutics, a gene therapy company that recently announced they are expanding their R&D operations and adding 500 new jobs over the next five years. The three main life sciences clusters in the region include: University City, where the major academic research institutions and hospitals are located; the Navy Yard, a redeveloped former military facility that includes GlaxoSmithKline U.S. headquarters and lab space for other life sciences tenants; and the PA suburbs, where big pharma R&D campuses and manufacturing plants are located. About 8.6 msf of the region’s 17-msf of lab inventory is in R&D/Flex space, with a majority of that located in the suburbs. The broad range of lab facilities located across submarkets and types of space, from class A new construction office to R&D/Flex, means rents can run from $20/sf to over $50/sf full service gross equivalent.
FAST LAB STATS
TOP TEN LIFE SCIENCE EMPLOYERS (BY REVENUE)
PHILADELPHIA COMPANY TYPE AmerisourceBergen Corp. Medical Devices
MARKET SQUARE FOOTAGE
(R&D/FLEX & OFFICE WEIGHTED) $23.71 AVERAGE RENT (PER SF)
Merck & Co. Inc.
Endo Health Solutions Inc.
(R&D/FLEX & OFFICE WEIGHTED) 2.6% OVERALL VACANCY
Jazz Pharmaceuticals PLC
TOP THREE NIH-FUNDED INSTITUTIONS
UNIVERSITY OF PENNSYLVANIA $505M
CHILDREN’S HOSPITAL OF PHILADELPHIA $143M
TEMPLE UNIVERSITY $83M
Made with FlippingBook Learn more on our blog