Focus
Life sciences startups slimming space needs during downturn
Bisnow – November 30
The slowdown in funding for the life sciences sector over the second half of 2022 has been pronounced. Carta, a firm that tracks startup investments, found that biotech seed funding, which hit quarterly peaks of roughly $400 million and 53 rounds in 2021, sank to 26 rounds and roughly $100 million in Q3 of 2022. While budget constraints may be pushing startups to re-evaluate their real estate budgets, they are generally finding more options on the market, according to Colliers Director of Research, Aaron Jodka. Compared to 2021, the market may be challenging but compared against 2018 and 2019, activity and leasing remain relatively strong.
News
Big Pharma embraces sustainability and carbon net zero goals
BioSpace – November 21
Corporations’ plans to pursue carbon net zero goals were reinforced with the post-election publication of the United Nations’ latest pronouncement – and most large pharmaceutical companies are already on board with sustainability plans. Further, investors are increasingly interested in companies that reflect their own social sensibilities, according to a recent Morningstar global survey of 500 institutional asset owners from 11 nations. 85% of institutional investors responding to the survey said environmental, social, and governance factors are material to investment policy.
Deals
Horton Plaza redevelopment nearing completion
San Diego Business Journal – November 7
The transformation of Horton Plaza from a fortress-like shopping mall to a grand, wide-open development with inviting parks, retail shops, and office and lab space is readily apparent. Completion of the exterior of the project by Stockdale Capital Partners is expected by the end of the year. Among the more dramatic changes, five floors were added to the former Nordstrom building, creating a 10-story structure designed for life science tenants.
CalPERS adds $673M bet with DivcoWest life sciences venture
Commercial Observer – November 22
The California Public Employees Retirement System is raising its bet on life sciences real estate in its partnership with DivcoWest. At its latest board meeting, the retirement fund approved a $673 million allocation for its DW Life Science Partners vehicle with the San Francisco-based investment firm, according to The Registry. This comes after an initial $500 million commitment last year.
19-acre biotech campus in Thousand Oaks approved
Ventura County Star – November 16
The City of Thousand Oaks Planning Commission has approved a 19-acre campus designed to attract more biotech firms to the area. It will be the first campus built exclusively for life science tenants in the city, which has a large biotech hub anchored by Amgen. Alexandria Real Estate Equities plans to build four one- and two-story buildings at the site.
Burlingame approves 476K-SF life science campus
Connect CRE – November 28
King Street Properties and Helios Real Estate Partners have won approval for a 476,000-square-foot life science campus at the intersection of Old Bayshore Highway and Malcolm Road in Burlingame. According to the San Francisco Business Times, the complex will feature a seven-story, 193,000-square-foot north campus and an eight-story, 282,000-square-foot south campus, as well as parking and public areas.
Trammell Crow JV breaks ground on Seattle life science building
Commercial Property Executive – December 1
Trammell Crow Co. and Washington Capital Management, on behalf of their clients, broke ground on 1916 Boren, an 11-story, 282,700-square-foot life science development in Seattle’s Denny Triangle neighborhood. 1916 Boren is Trammell Crow’s second life science development in the Denny Triangle neighborhood, a growing technology hub and sought-after location for businesses and residents.
JLL arranges $213.4M in financing for life sciences portfolio in Northern California
REBusiness Online – November 8
JLL Capital Markets has arranged $213.4 million in financing for a five-building life sciences portfolio in South San Francisco and San Carlos. The borrower, an affiliate of GI Partners, secured a seven-year, fixed-rate loan through a life insurance company.
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