Denver an Emerging Life Sciences Hub
Even when the global pandemic caused many office tenants to evaluate their future office requirements in 2020, there was almost no slowdown in the life sciences space. Lab, medical office and manufacturing space is rising rapidly, especially with the successful implementation of the new mRNA technology.
Cushman & Wakefield has published an insightful new report, Life Sciences on the Rise, offering detail into many key trends and data points impacting this critical sector, including education, funding, talent pool, along with several real estate market trends. The report also provides further analysis on 17 Life Sciences markets across North America, including Denver, an emerging Life Sciences hub.
Key report highlights specific to Denver:
- The Denver market has solidified itself as an emerging life sciences hub by promoting growth and innovation due to the leading research institutions, federal labs and nearly 900 life sciences companies calling Denver home.
- Industry growth has been fueled by a strong STEM labor pool, favorable taxes and incentives, and an abundance of capital and funding from both the private and public sectors.
- Denver’s life sciences industry is highly comprised of medical device and diagnostics companies, which account for 64% of life sciences employment.
- The Denver market, which includes the flagship university of the University of Colorado system in Boulder, is home to a vibrant start-up community due to the strong incubator and innovation centers that reside in the region.
- Lack of available supply has been a limiting factor in the expansion of the life sciences and drug discovery activities in the Denver market with the Novartis campus in Longmont viewed by many as a potential lab cluster opportunity.
- The life sciences market continues to expand, with growth primarily concentrated in the Boulder and Northwest suburban submarkets.
- Denver’s lab vacancy between YE 2019 and YE 2020 did decline to 18.1%, while rents spiked YoY to $15.70 psf NNN.
- Denver’s life sciences employment has grown approximately 80% since 2001.