Increased investment and employment in the life sciences sector has driven life sciences related real estate to new heights. Thanks to an influx of venture capital as well as billions of dollars in funding from the National Institutes of Health, the life sciences sector has grown nearly five times as fast as the economy since 2000, adding 85,000 jobs, with roughly 70% of that job growth (61,000) in the past eight years.
This is primarily a response to an aging population with increased longevity. By 2030, there will be 73 million Americans aged 65 or older, equating to 20.6% of the population, compared with 40.5 million Americas in this cohort in 2010. Over the past decade, basically two sets of forces have been driving the acceleration of growth in this sector – demand for health services soars as the population ages and the technology enabling life science leads to greater supply of new products, which in turn has led to historically high investment in this sector.
Atlanta, home to Centers for Disease Control, was the No. 12 city for overall VC funding from 2010 to 2017 with $5.6 billion invested, according to PitchBook. In 2017, $1.6 billion was invested, up 114% year-over-year. Georgia is home to a large bioscience industry that has grown significantly over the past several years, according to Georgia Bio, an independent, non-profit trade association. Their research indicates that bioscience-related VC capital investments totaled $175 million in 2017.
Additionally, the state’s bioscience firms have grown their employment base by 10.6% since 2014 and employed just over 32,000 employees in 2016, according to Georgia Bio, with four of the five major industry subsectors increasing employment in Georgia from 2014 to 2016. Additionally, Georgia’s research universities conducted nearly $1.1 billion in bioscience-related academic research and development in 2016, funded, in part, by a growing base of National Institutes of Health awards that reached $537 million in fiscal year 2017.
To read Cushman & Wakefield’s Life Science report, click here.