This article was written for our sponsor, CBRE|Raleigh.
The life sciences industry is growing at a rapid pace. Between 2001 and 2021, the total number of people employed by the industry grew 79%, in contrast to 8% for all other occupations in the US, demonstrating the significant growth the industry has experienced within the last two decades. To keep up with the latest changes, companies need to locate in areas that allow them to stay ahead of the curve and the Triangle is the market to do so. Less than 30 years ago, the Triangle was not even on the map as a life science hub but has quickly emerged as one of the top five markets within the US.
There are many reasons for this growth, such as investments from venture capitalists and the availability of managerial talent with experience in the industry. However, one of the most important factors is the Triangle’s educated workforce that has a healthy talent pool of life science researchers. A significant contribution to this availability of talent is the high number of colleges and universities in the area that helps to attract and retain workers in the life sciences field. “We have a lot of Tier 1 research programs in our market that create new companies and bring in federal research dollars,” said Lee Clyburn, an Executive Vice President with CBRE|Raleigh. In 2021, UNC-Chapel Hill and Duke University received a combined $1.2 billion in funding for research programs from the NIH. In total, North Carolina received $2.4 billion in funding, which was the fourth highest total among all 50 states. This funding continues the essential work that North Carolina research universities are doing to further life science research and creates an attractive environment for life science companies.
At the same time, the affordability of the Triangle is another big draw for companies, as it is more affordable than other major life sciences hubs like San Francisco or Boston. Thanks to these advantages, the Triangle is poised to continue developing as a leading destination for life sciences companies.
Organizations like CBRE|Raleigh are playing a role in making the Triangle a hub for life sciences. CBRE|Raleigh is a commercial real estate services company helping bring in life sciences companies and identify the best possible locations for them within the region. To date, the firm has conducted over $1 billion in life science real estate transactions within the area.
“Most of the companies that we see looking for real estate are developing out of another company already in our market,” said Clyburn. “In several instances, individuals may have built and sold a company and are now using that capital to create a new one. Within the last couple of years, companies such as Eli Lilly, Amgen, and FUJIFILM Diosynth Biotechnologies have committed to investing significant capital in their footprints within our market. This helps to attract other Fortune 500 companies with them.”
In the Triangle, life science companies used to be concentrated in Research Triangle Park, but CBRE has noticed the industry has spread across the region. “We have a unique infrastructure to produce labor for this industry and it’s a tightly connected industry. Life science companies like to cluster because they know that their neighbor has been successful. However, as our market continues to grow, companies are expanding out to areas such as Holly Springs, Sanford and from Zebulon to Mebane,” said Clyburn.
As the life sciences industry continues to develop, its presence has grown more noticeable in the Triangle. The market’s leading research universities, a strong talent pool, and affordable real estate are all factors that have contributed to the area’s success as a hub for life sciences companies.
This article was written for our sponsor, CBRE|Raleigh.
