Skip to main content

As Houston Life Sciences Sector Heats Up, Developers Delivering On Needed Space

Published Jun 07, 2022 by A.J. Mistretta

levit green.jpg

A rendering of Levit Green

Texas A&M TMC.jpg

A rendering of Texas A&M's Innovation Plaza

A life sciences real estate building boom is sweeping the nation, driven by sharp increases in health-related VC funding, promising new therapies from pharmaceutical companies and a shortage of available space, particularly in emerging markets. 

Investment in U.S. life sciences real estate increased 62% in 2021, according to a report from commercial real estate firm CBRE. Investment in the sector has grown by 111% since 2018 and another 10% increase is forecast for 2022, with much of that new investment going to ground-up development. 

Industry watchers are pointing to Houston as one rapidly evolving market where proximity to the world’s largest medical center and a diverse and educated population are fueling interest from established life sciences and biotech companies aiming to grow, just as new startups hatched out of local research institutions look to scale. 

Life sciences/health care led among the local sectors in venture capital funding for four of the last five years and accounted for 26% of all VC funding in the market in 2021. Promising startups and new technology are adding to an already robust market with more than 1,700 life sciences firms, hospitals and research institutions currently operating in the region. Big players such as Abbott, Bayer, Merck and Novartis already have a strong local presence. 

Commercial space for life sciences companies, including lab space, offices and more, has been scarce, but a series of projects near Houston’s core are underway to satisfy growing demand. At the same time, a mounting cohort of companies are looking outside the urban center for affordable space in promising suburban districts like The Woodlands, Pearland, Sugar Land and League City.  

Here’s an updated look at several major projects: 

TMC3

Texas Medical Center is slated to deliver the first phase of its ambitious 37-acre TMC3 collaborative research campus in 2023. The 250,000-square-foot Collaborative Building will include a large-scale research lab, office space, 7,000-square-foot atrium and more. A hotel and conference center, residential and retail space, as well as six additional industry and research buildings are included in the project’s master plan. TMC is working in collaboration with other founding institutions to create the campus centered around a series of parks in the shape of a double helix. The partners include the University of Texas MD Anderson Cancer Center, Texas A&M University Health Sciences Center and the University of Texas Health Science Center at Houston. Learn more

Levit Green 

Hines is slated to complete the first phase of its 53-acre Levit Green life sciences campus this year. The initial five-story building will create 294,000 square feet of space overlooking a plaza and a manmade lake. In time, Hines and its project partners 2ML Real Estate and Harrison Street hope to create roughly 4 million square feet of development on the site located between Hermann Park and Texas 288. Learn more

Texas A&M Innovation Plaza 

Texas A&M University and its development partners Medistar Corp. and Healthcare Trust of America are well underway on Texas A&M Innovation Plaza, a new five-acre campus within the Texas Medical Center and adjacent to the TMC Transition Station. The project is centered around a common green space will include three towers: EnMed Tower, an 18-story, 280,000-square-foot academic building anchored by the university’s Engineering-Medicine (EnMed) program; Life Tower, a 19-story, student housing building; and the 30-story Horizon Tower, which will include 17 floors of life sciences, dry and wet labs, restaurants, retail, and medical office space atop a 2,600-space parking garage. Horizon Tower is slated for completion in Q1 2024. Learn more
 

Learn more about the life sciences industry in Houston.

Related News

Economic Development

Houston Primed for Life Sciences Boom

5/17/23
The life sciences industry is a global force driving medical innovation and advancements in health care. From pharmaceuticals and biotechnology to medical devices and diagnostics, this sector plays a crucial role in improving the quality of life for people around the world. As the industry continues to grow and evolve, new hubs of innovation are emerging, each with its unique strengths and advantages.  Houston is a world-class region with a thriving innovation economy. With a high concentration of employment, healthy funding scene, and unwavering commitment to translational research, the Houston region has positioned itself as one of the country's fastest-growing life sciences ecosystems - ranking #13 in a 2022 CBRE industry study. Bright scientific minds, entrepreneurial drive and an active investment community gives companies fertile ground for disruptive innovation in biotech and life sciences.  The Texas Medical Center (TMC), the world's largest medical district, offers companies a unique opportunity to collaborate and implement technology in one of the largest healthcare ecosystems. TMC and the variety of research institutions and innovative companies who operate in Houston are taking on the greatest medical challenges of our generation.  Houston is home to over 700 life sciences companies, making it a top-15 market for life sciences employment nationwide and first in Texas. This robust and diverse workforce, coupled with an extensive education infrastructure and world-class research institutions, makes Houston a prime location to support growth across key subsectors like cell and gene therapy manufacturing, molecular diagnostics, and biologics drug development and manufacturing.  In addition to established companies, Houston has a vibrant startup ecosystem that provides support and resources for early-stage companies. The city has several startup incubators and accelerators, including TMCx, which is located within the Texas Medical Center and provides startups with access to mentors, funding, and other resources. TMCx has hosted over 300 companies with over $5.8 billion raised. Additionally, Houston has a strong network of angel investors and venture capitalists that are actively seeking out innovative life sciences companies to invest in.  With the densest patient population in the world, Houston allows for transformational clinical applications. The region ranks second in the nation in clinical trial volume, with 4,906 active clinical trials in 2022, representing over 20 percent of all active U.S. trials. Companies located in Houston can also leverage unique funding programs. In 2022, National Institutes of Health (NIH) awarded 1,752 grants totaling $961 million represented for Houston. The Cancer Prevention and Research Institute of Texas (CPRIT) has also committed $6 billion in funding for groundbreaking cancer research, prevention and product development programs for companies located in Texas. Since its inception in 2009, CPRIT has awarded more than $3 billion in grants for cancer research, of which MD Anderson has received approximately 20 percent.  Houston also has a growing number of life sciences developments that encourage innovation and collaboration between industry partners. Generation Park, a 4,200-acre master-planned development, is creating a thriving ecosystem for companies to grow and provides a place where education and industry can converge. It will be the home of the San Jacinto Biotechnology Center, a biomanufacturing workforce institute that will offer certificate coursework in bioprocessing to students as part of a strategic partnership with the National Institute for Bioprocessing Research and Training (NIBRT). TMC Helix Park is another life sciences development that will provide 6 million square feet of research labs, retail, hotel, and large scale commercialization space, in addition to TMC3, a collaborative research building with four founding institutions. According to the Real Deal, the University of Texas MD Anderson Cancer Center plans to build a $668 million laboratory expansion that will connect to TMC Helix Park. Construction is expected to begin in September, with completion estimated in late 2027. Levit Green is a 53-acre mixed-use life sciences district under construction near Texas Medical Center that is expected to be completed this year. The initial five-story building will create 294,000 square feet of space overlooking a plaza and a man-made lake. Texas A&M Innovation Plaza located in the Texas Medical Center is expected to be completed in 2024. Consisting of research facilities, affordable student housing, office space, retail space and parking, the Innovation Plaza will be home to the Texas A&M Engineering Medicine (EnMed) program and provide student housing for the Prairie View A&M University’s College of Nursing. This project is part of Houston's ongoing investment in programs that will grow the talent pipeline and prepare its future workforce. The Partnership’s economic development team will be attending BIO International in Boston from June 5-8th to spotlight the region’s thriving life sciences ecosystem and its unique opportunities for innovation and growth.
Read More
Aerospace & Aviation

Houston’s Unique Convergence of Industries Takes Center Stage in Delegation Trip to the West Coast

5/9/23
The West Coast has long been recognized for its life sciences and tech ecosystems, but when those companies look to scale or expand operations, Houston is a top destination. This symbiotic relationship was a defining characteristic of the Partnership’s recent delegation trip to the West Coast, led by its Regional Economic Development team.   The delegation focused on building key corporate relationships with top companies in San Diego, Los Angeles, and Silicon Valley to explore future collaboration opportunities that would help the Greater Houston region to attract more jobs and investment, while also giving California companies access to new markets and room for continued growth.  San Diego’s leadership and status as a thriving life sciences hub made it a valuable destination for our delegation to learn about neuroscience, cancer research, and corporate real estate through productive meetings with the Salk Institute, BioSapien, and Intersect Management. The Partnership’s delegation, which included leaders from the Texas Medical Center, Cell Therapy Manufacturing Center (CTMC), and The Woodlands Economic Development Partnership, shared how Houston can work to assist life sciences companies in their research and the opportunities available for similar developments in the Greater Houston region.  Houston’s emergence as a growing life sciences ecosystem was also the focus of meetings in the Bay Area with the California Institute for Regenerative Medicine to learn about its work in cell and gene therapy, especially as it relates to CTMC in Houston, and with Bionova Scientific to discuss their work in biologics.  The unique industry convergence of life sciences and the energy transition in Houston is providing opportunities for development and collaboration between diverse companies across different sectors. Meetings with Sempra Energy, TÜV SÜD America, and BASF explored this rare convergence and what it could mean for companies located in the two regions’ ecosystems. Delegates, including leaders from Rice University, Cemvita, and Alchemy Industrial, also visited with Google to discuss their continued investment in Houston’s digital tech and energy transition ecosystems.  As part of the Partnership’s ongoing economic development efforts, delegates met with top site selection companies in the Los Angeles area to explore expansion opportunities for companies focused on sustainability, energy transition, digital tech, manufacturing, and logistics – all core strengths for Houston’s distinctive market.  The delegation closed out a successful week by hosting a signature reception and dinner in partnership with the Houston Energy Transition Initiative (HETI). The evening’s programming included an energy startup panel that featured expert panelists from Activate Berkeley Community, Cemvita, Alchemy Industrial, and Rice University to discuss present and future efforts relating to the energy transition and Houston’s startup ecosystem. Learn more about why companies choose Houston.
Read More

Related Events

Economic Development

BIO International 2023

Houston regional partners and leaders are headed to the 2023 BIO International Convention, — the world’s largest gathering of the biotechnology industry. We invite you to come see us at Booth 1472 and learn…

Learn More
Learn More
Executive Partners