But while the sector is down, it’s far from free fall. And other big cities, including Boston, are seeing sharp declines.
One metric: For the first time in Philadelphia, a handful of developers are building a lab space to their specifications. In other words, we are creating spaces based on market demand rather than specific tenant demands. Until recently, it happened only in major life science markets in the country, such as San Francisco and San Diego.
In March, two developers, Mosaic Development Partners and Ensemble Real Estate, announced a partnership with Oxford Properties Group to create up to 3 million square feet of life science properties.
According to the Philadelphia Inquirer, the deal will cover more than 100 acres in the South Philadelphia Navy Yard and include five existing biotech buildings and two planned biotech buildings (laboratory, office building, pharmaceutical manufacturing plants).
Separately, Spark Therapeutics, a Philadelphia-based gene therapy company, is building a $575 million research facility and manufacturing center on the campus of Drexel University in University City. And UK-based biopharmaceutical company Achilles Therapeutics recently signed his three-year lease for space on North Broad Street. Site of US headquarters.
Additionally, according to Vandegrift, all the incubator space for biotech companies in Philadelphia is full.
“Generally speaking, we still feel very positive and bullish about the future of this industry.