The life science industry is booming in the U.S.
Growth in the sector, which consists of pharmaceuticals, biotechnology and medical-device manufacturing real estate, is not expected to slow anytime soon, according to a new report by CBRE.
Companies within the life science industry have benefited from the country's aging population, increases in public and private funding, healthy employment gains and strong construction growth for lab, research and development space.
Many of these factors are anticipated to continue driving the sector in the coming years. Life expectancy in the U.S. has increased by nine years on average, meaning the need for medical services and products to improve the lives of the elderly has increased while venture capital investment in the life science industry has also increased 53% since 2008.
“When you look at the landscape of investment opportunities within the commercial real estate sector, few asset classes offer as compelling a case for near-term optimism as the life-sciences industry,” CBRE President of Advisory & Transaction Services, Investor Leasing Scott Marshall said in a statement.
While job gains have been substantial across the board, employment in the life science industry has grown by 23.5% since 2001, greatly outpacing the overall job-growth rate of 10.2%.
As for growth in specific regions across the country, Boston, the San Francisco-Bay Area, San Diego and Raleigh, North Carolina, were privy to the strongest employment growth, which could be attributed to each of the regions' strong research and development markets.
“Many solid trends support strong growth going forward for the life sciences sector, especially in major R&D markets,” CBRE Director of Research and Analysis Ian Anderson said.
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