Market Snapshot: Life Sciences

Earlier this month at the Texas and the South M&A and Business Symposium, we were lucky enough to have economist Dr. Ray Perryman on stage. We were presented not only with a crash course on U.S. and Texas economics but also with predictions of sectors expected to significantly impact the country’s economy as well as the AE and environmental industry.  

One area that was drastically changed by the pandemic and, according to Dr. Perryman, will be driving economic growth in many states in the coming years is life sciences. The sector is composed of industries and companies involved in the research, development, and manufacturing of pharmaceuticals, therapies, and medical devices aimed at improving human life. Here are a few highlights on that sector:

  • Life sciences employment is over 2.1 million. It is expected to be slightly higher at the end of 2024 than it was in the same month last year.
  • Scientific research and development, a key industry within the life sciences sector, is expected to grow at a 2% compound annual growth rate between 2024 and 2029.
  • According to Colliers, more than 50 million SF of life sciences space has been absorbed across major markets since 2015. Deliveries reached a record-high last year, with 20 million SF.
  • The largest life sciences employment clusters in the U.S. are in San Francisco, Boston, New Jersey, San Diego, and Washington D.C. Emerging markets include Houston, Minneapolis, New Haven, Pittsburgh, and Salt Lake City.
  • Life sciences is in recovery mode. Absorption has not kept pace with project completions, and vacancies are rising. Lab/R&D construction will need years to absorb the oversupply.
  • Investments in research, technology, and innovation through DARPA (Defense Advanced Research Projects Agency) have the potential to create numerous opportunities for life sciences companies and for design and engineering firms.

Sources: IBISWorld; Colliers; CBRE; UBS; PhRMA; TEConomy Partners

To learn more about market intelligence data and research services offered by Morrissey Goodale, schedule an intro call with Rafael Barbosa.

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