Skip to main content

Houston Ranks Among Leading Life Sciences Markets: CBRE Report

Published Jun 15, 2022 by A.J. Mistretta

levit green.jpg

A rendering of Levit Green

Aided by a high percentage of PhDs and a low cost of living, Houston ranks No. 13 in a new analysis of the nation’s top 25 life sciences markets from real estate firm CBRE. 

The report sheds light on the growth of life sciences hubs beyond the traditional coastal markets such as Boston and San Diego. Houston is getting a boost from the growing Texas Medical Center and an influx of venture capital earmarked for life sciences research. 

Job growth in life sciences professions – from bioengineers and biochemists to microbiologists and data scientists – expanded by 79% over the last two decades to roughly 500,000. In comparison, the overall U.S. job growth rate in that span was 8%, according to CBRE. That surge in life sciences jobs boosted mainstay markets such as Boston and San Francisco as well as emerging hubs including Nashville, Salt Lake City and Houston. 

The report suggests that Houston’s life sciences labor market offers an attractive combination of affordability and a particularly strong PhD talent pool. Major research universities and medical institutions such as the UT School of Public Health and Baylor College of Medicine boosted the city’s ranking ahead of other Texas markets in CBRE’s analysis. 

“Houston’s favorable business climate and cost of living, combined with the size of its scientific talent pool and medical institutions, make it an attractive market for life sciences industry expansion,” said Scott Carter, Senior Vice President, Life Sciences & Healthcare at CBRE in Houston. “Houston is projected to lead the nation in population growth over the next five years, which will only strengthen the appeal of its labor market.” 

Houston ranks No. 1 in the nation when it comes to life sciences wages relative to the cost of living, making it more attractive for life sciences professionals to enjoy a high quality of life. PhDs account for 18.5% of the 1,300 Biological and Biomedical Sciences degrees issued from the Houston MSA annually – the highest concentration nationwide. And Houston produces 4.2% of such PhDs in the U.S. – more than all but a few major life sciences markets do. 

“Millions of square feet and billions of dollars of life sciences development is underway or planned in Houston to break down longtime silos between commercial, academic, and medical sectors,” Carter said. “Leveraging the unmatched scale of the Texas Medical Center, these new moon-shot investments are building a launchpad to rocket Space City into a new era as a global hub for scientific and human progress.” 

Highlighting the rapid investment in the city’s innovation ecosystem, Houston has one of the country’s fastest-growing pipelines for life sciences venture capital funding, which increased by 937% in the last five years – nearly three times the nationwide increase of 345%. 

Source: CBRE

To develop the ranking, CBRE assessed each market against multiple criteria, including its number of life sciences jobs and graduates, life sciences’ share of each market’s overall job and graduate pool, number of doctorate degree holders in life sciences, and its concentration of jobs in the broader professional, scientific and technical services professions. 

A number of large-scale life sciences developments are currently in the works that will add significant amounts of new research, lab and office space to the existing market, including Levit Green and TMC3. Learn more about some of those projects. Click here to see the full CBRE report.

 

Related News

Economic Development

Houston's Life Sciences Sector on the Verge of a New Era

2/27/24
Houston continues to evolve as a premier destination for life sciences and biomanufacturing through a multifaceted strategy that capitalizes on its existing strengths and fosters innovation and growth.   Since its inception in 1945, the Texas Medical Center has evolved into a vast medical district spanning 5 square miles  and serving over ten million patients annually.  More than 60 institutions operate within the Texas Medical Center, serving as a catalyst for Houston’s collaborative ecosystem, with efforts like the Cell Therapy Manufacturing Center, JLABS@TMC and CUBIO. This helps set the stage for groundbreaking research and provides direct access to nearly 5,000 active clinical trials, a major boon to innovation.   Recent years have witnessed significant strides in laying a robust foundation for Houston's position as a leader in innovative life sciences and biotechnology. These efforts came into focus last month at Bisnow’s Life Sciences Evolution event, with leaders in the life sciences industry, real estate and innovation envisioning the future growth of the Houston life sciences market. Among the assets shared as advantages were access to clinical trials, business environment, workforce efforts and quality of life.   “Having access to the patient population is critical to success, especially a diverse population,” Monique Knighten, PhD of Portal Innovations said. “There’s a key benefit to have access to these clinical trials and the expertise involved, as well as living close to where the science is being developed.”   Legislative actions, such as the passage of Proposition 10 in November which provides new incentives for medical device and pharmaceutical manufacturing companies, enhances the region's competitiveness and economic prospects. Additionally, investments in workforce development, exemplified by collaborations between educational institutions and industry partners like San Jacinto College and the National Institute for Bioprocessing Research and Training (NIBRT), ensure a skilled talent pool for the future.  “The relationships with companies, colleges and high schools are integral,” Pearland EDC Vice President Brian Malone said on the panel at Bisnow discussing suburban life sciences growth. “We’ve really worked hard on that with a business retention plan to find out what type of training and what type of workers these companies need.”   Furthermore, substantial real estate investments further support life sciences research and development. TMC’s Helix Park opened in 2023 with the TMC Collaborative Building and industry research hub Dynamic One, with new tenant Houston Methodist leasing 75,800 square feet. Just north inside the Medical District, Hines’ Levit Green is now leasing nearly 300,000 square feet of purpose-built lab and office space as part of a future 53-acre district. On the northeast side of the metro, McCord’s master-planned Generation Park recently broke ground on a new Center for Biotechnology in partnership with San Jacinto College. In The Woodlands, Alexandria is developing 8800 Technology Forest Place into 325,000 square feet of Class A space.   Initiatives such as the Cancer Prevention Research Institute of Texas (CPRIT) and a thriving innovation ecosystem further reinforce the city's position at the forefront of bioscience breakthroughs and economic impact.  With strategic advantages like its top-ranked port, diverse population, and accessibility to global markets, Houston is poised to further elevate its status as a hub for life sciences innovation. As Houston continues to advance its life sciences and biotechnology sector, opportunities for collaboration and growth abound, driving progress in public health and driving the next wave of bioscience innovation.   Explore Houston's dynamic life sciences ecosystem.  
Read More
Aerospace & Aviation

New Developments and Innovation Driving Growth in Bay Area Houston

12/7/23
Often referred to as the “Boating Capital of Texas”, Bay Area Houston is a top destination for businesses, families, and tourists, thanks in part to its close proximity to Galveston and Houston.  Encompassing a widely diverse region, the Bay Area stretches from Pasadena to Galveston, consisting of communities such as La Porte, Seabrook, Clear Lake Shores, Webster, Friendswood, League City, Dickinson, Texas City, and La Marque.  Boasting the nation’s third largest concentration of recreational boating centers and a variety of amateur sports, outdoor activities, beaches and parks, the Bay Area’s waterfront contributes to its high quality of life and has propelled growth in its recreation and tourism industry, while population growth in the area and the arrival of new facilities has buoyed the region’s health care sector.  According to the U.S. Census Bureau’s 2021 American Community Survey, the Bay Area has experienced consistent growth in population, income, and employment since 2016 and is home to over 560,000 residents, based on 2019 data from the Bay Area Houston Economic Partnership.  Business Climate  Home to the NASA Johnson Space Center, Ellington Airport, and one of the world’s only truly urban commercial spaceports, Bay Area Houston is known as the nexus for Houston’s aerospace and aviation industries.  Additionally, the Bay Area is also an important hub for transportation and logistics, health care and life sciences, and tourism. Other industries of note include specialty chemical, maritime, and recreation.  Its robust industrial presence is supported by the construction of several industrial parks and complexes, as well as new warehouse and distribution centers and facilities.   Packwell, a plastics bagging and logistics company based in La Porte, recently broke ground on a 725,000-square-foot resin packaging facility at Port Houston’s Bayport Industrial Complex while Kao Corporation recently broke ground on a $250 million tertiary amine production plant in Pasadena.  Business Developments  Houston Spaceport  The Houston Spaceport serves as a center for collaboration and innovation in the aerospace community. Earlier this year, the company announced that it will launch Phase II of its expansion project with plans to begin work within the next 12 months. Phase II will stretch over 300 acres, offering more parcels for aerospace companies, a hotel, restaurants, and retail space.  Axiom Space broke ground this spring on a 23-acre campus that will house its new headquarters and space station production facility at the Spaceport. The campus will contain spaces for astronaut training, mission control facilities, and engineering development and testing labs. A ribbon-cutting ceremony was held in December 2023 to officially open the first phase of the development. Axiom has also leased space in Webster for engineering and production operations.  Collins Aerospace recently opened a 120,000-square-foot facility that will allow for expanded operations, manufacturing, and testing. Its new facility will support the development and testing of several key space systems, including the next-generation spacesuit.  Intuitive Machines broke ground on 12.5 acres at the Houston Spaceport with a 125,000-square-foot facility under construction that will house office, laboratory, production, assembly, and test space.  Mixed Use  A number of communities in the Bay Area Houston region have mixed use developments planned, including Seabrook, League City, Texas City, Friendswood, and more.  Seabrook Plaza on NASA Parkway is a 15-acre, $170 million mixed-use waterfront development that will feature two Margaritaville-branded hotels. The development will also include a 10,000-square-foot event center, a seven-story apartment complex, and 20,000 square feet of waterfront dining.  Riverview at Clear Creek in League City is another waterfront mixed-use development spanning 59 acres that will include a hotel, multifamily project, townhomes, an amphitheater, boardwalk and trails, and retail space and restaurants. The project also has marina infrastructure work currently underway.  Plaza 96 is a 75,000-square-foot mixed use development in League City that will have space for retail, restaurants, medical offices, and office warehouses. It is expected to break ground this year. One Sixty One in downtown Friendswood is a 5.5-acre development anchored by a boutique hotel and banquet room. The project will also include residences and executive offices, restaurants, retail, collaborative spaces, and a green rooftop experience. New construction began this spring. Click to expand Rendering of One Sixty One boutique hotel Photo courtesy of Banfield Properties, Inc.   Recreation & Tourism  Peninsula Beach Resort is a 110-acre resort development on Bolivar Peninsula at Crystal Beach that will include over 200 beach houses and cottages, in addition to five mid-rise condominium buildings and 50 RV sites. The development will also include a clubhouse, beach bar, and an FAA-approved airport, making it the only fly-in beach resort in the U.S.  Great Wolf Lodge broke ground on a new hotel, indoor waterpark, and conference center in Webster in 2022, with the resort planned to open in 2024. Representing a $200 million investment, the 27-acre site will also boast a 58,000-square-foot family entertainment center called Great Wolf Adventure Park.  Education  Bay Area Houston is home to several higher education institutions, including the University of Houston-Clear Lake, which touts one of the most complete biotechnology graduate programs in the state, as well as San Jacinto College, College of the Mainland, Lee College, and Houston Community College.  College of the Mainland, a community college in Texas City with locations in League City and La Marque, opened its Industrial Careers Building in fall 2022 and has several new buildings planned, including a 134,000-square-foot library and classroom building, a 20,000-square-foot corporate and continuing education center, a 50,000-square-foot public services center, and a three-story classroom building.  Lee College recently opened its new 11,000-square-foot Corporate Training Center that will offer hands-on technical training, including onboarding and upskilling, and leadership development for employees of all levels. The center will give students and employees the opportunity to work with equipment that is being used in the field, as well as a number of training labs.  San Jacinto College is planning to launch a new degree program in spring 2024 that seeks to fill the workforce gap in early childhood education. The new Bachelor of Applied Science in education will target paraprofessionals and individuals who work for other early-learning programs.  Learn more about Houston’s surrounding regions. 
Read More

Related Events

Executive Partners