September 27, 2022

Life-Sciences-Banner_Life-Sciences-Real-Estate-Update
According to a recent Newmark report, the national average sale price for a life sciences lab space reached a record high of $564 per square foot in the first half of 2022, even as overall sales cooled. The total dollar volume of life sciences property sales dropped 33.6% to $7.7. billion in the first half of the year compared to the first half of 2021. At the same time, venture capital investment in life sciences companies in the first half of 2022 declined by 18.5% to $20.8 billion year-over-year, according to the report which focused on 14 U.S. life sciences hubs.
San Diego, the third largest biotech cluster in the U.S., has become a top focus for real estate investors, who hold a substantial slice of the market, based on a new report from Newmark. Institutional investors are estimated to own 44% of existing life science lab and office space in the region, and one, IQHQ, a private real estate investment trust based in Solana Beach, owns 21 such properties. More than 11 million square feet of additional space is proposed, half of which will be located in the Sorrento Mesa area of San Diego.
Scientists from UCLA and Caltech have found a way to boost the cancer drug development pipeline. Their platform, 1200 Pharma, uses chemistry technology from Caltech and biomarker-driven assays from UCLA to speed up its drug development and clinical approvals. 1200 Pharma, and platforms like it, are becoming the darlings of the biotech venture world. Unlike investing in singular drugs, venture firms are pouring money into biotech platforms that can more or less make their own therapeutics. These self-contained entities have seen the lion’s share of venture funding in the past three years.
Harbor Associates has purchased an office complex in Agoura Hills, with plans to redevelop it into lab and research space. The Long Beach-based firm and its partner, Platform Ventures bought a 119,000-square-foot building at 30601 Agoura Road for $19.3 million. In connection with the deal, Harbor signed A2 Biotherapeutics to an 11-year lease to occupy approximately 76,000 square feet at the property.
IQHQ, a biotech REIT, has purchased The Hyatt Regency La Jolla Aventine for $216 million. The firm has already acquired a pair of adjoining buildings on the site. While there has been no announcement by IQHQ regarding re-development plans for the hotel, the company’s website features a future life science project called Aventine on University Center Lane, adjacent to the Hyatt Regency.
A life sciences incubator that caters to fledgling companies has opened its doors, marking a big expansion of its San Jose operations. BioCube San Jose has opened a new incubator at 2680 Zanker Road in 35,000 square feet of space that the company leases at the BioSquare Silicon Valley campus. BioCube and BioSquare Silicon Valley will offer space to life science companies throughout their growth life cycle.
Sonoma Biotherapeutics Inc. has signed a long-term lease to create a biomanufacturing and R&D facility at Unison Elliott Bay, a three-building life science and technology campus underway in Seattle. The campus will include more than 300,000 square feet of Class A office and life science space upon completion. Sonoma Bio will occupy 83,000 square feet at the campus’ third building and serve as anchor tenant for the property owned by Office Properties Income Trust.
PMB and Montgomery Street Partners have unveiled plans for Coal Creek Innovation Park, a $280 million speculative life sciences development in downtown Superior. Totaling 365,000 square feet between Denver and Boulder, the park will be the first speculative purpose-built life sciences project in Boulder County, according to the developers.
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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