Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

LIFE SCIENCES: DEMAND DRIVERS Despite falling VC investment, resiliency in key markets remains

• VC funding has slowed as a result of overall economic factors, limiting the ability for smaller life sciences startups from expanding space in the key hubs of Boston, the Bay Area, San Diego and the Research Triangle. • An influx of new construction deliveries will increase inventory, which has already grown by 18% since 2020. The current construction pipeline is twice as large as it was when the pandemic began (38 msf vs. 16 msf). • Continuous breakthroughs in biotechnology, including gene editing technologies like CRISPR and advancements in drug discovery, will continue demand in the life sciences sector as researchers and pharmaceutical companies seek to develop innovative therapies and treatments. • Evolving healthcare regulations and policies, particularly those aimed at expediting drug approvals and ensuring patient safety, will drive demand by shaping the development, testing and commercialization processes. DIVE DEEPER: • Life Sciences Update: September 2023

2020 – 2022 Public Biotech Company Revenue

Life Sciences VC Funding

$300

$250

Billions

$200

$150

$100

$50

$

0 - 499K 500K - 0.9M 1M - 4.9M 5M - 9.9M 10M - 24.9M 25M+

Source: Pitchbook, Cushman & Wakefield Research

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