National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Private Capital Gravitates to Emerging Life Sciences Markets
Private capital funding has accelerated growth in the life sciences sector over the past decade, Cushman & Wakefield’s Sandy Romero reported. Record flows to the sector helped drive up valuations in preparation for initial public offerings (IPOs), which hit a record in 2020. Although the pace of funding and IPOs slowed down in 2022, capital continued to flow, but at a more moderate level.
Some emerging markets experienced year-over-year growth in funding during 2022, including Denver ($486.6 million, up 6%), Austin ($345 million, up 80%), Minneapolis ($275 million, up 26%) and Atlanta ($86 million, up 2%).
The markets seeing the lion’s share of funding continue to be the largest U.S. life sciences hubs: the San Francisco Bay Area, with $12.6 billion (35% of total U.S. funding), Boston with $8.5 billion (24% funding) and San Diego with $2.5 billion (7% funding).
Among the major life sciences hub markets, venture capital funding grew Y-O-Y in the Bay Area ($12.6 billion, up 32%) and Raleigh-Durham ($628 million, up 36%).
- ◦Financing
