Focus

California's life sciences industry generates $376B per year: Biocom California report

Commercial Observer – December 5

California’s lab and biotech industries provide 435,693 jobs that generate $376 billion in total economic output, according to a new report from Biocom California, an association representing life sciences companies and research institutions. With the San Francisco Bay Area and Greater San Diego, California is home to perhaps the two largest life sciences clusters in the nation outside of Boston-Cambridge. The state also has a growing secondary hub in Greater Los Angeles.

News

Despite 'lackluster' 2022, PwC remains 'bullish' on pharma M&A in 2023

Endpoints News – December 15

While 2022 was shaping up to be a busy year for M&A, PwC recorded an overall “lackluster” amount of activity, with both deal size and volume down from 2021. However, the firm predicts a 2023 rebound. In its latest deals outlook report, PwC predicted a more active 2023, with “M&A to more closely resemble prior years with a total deal value in the $225 billion to $275 billion range across all subsectors.” While last year saw an overall boost in the M&A space, with a total of 497 deals, fewer of those took place in the pharma space, with both medtech and CDMO and services seeing a spike. PwC said it remains “optimistic” on medtech this year despite headwinds, and expects “healthy M&A levels in 2023” in the services sector.

Where to find opportunities as economy slows

Commercial Property Executive – December 19

Investors are preparing for a challenging year, as weakening fundamentals and higher costs of capital will affect most commercial property sectors, according to a new CBRE report. Ian Anderson, CBRE senior director of research and analysis, predicts a cooling, or normalizing, process in which the economic slowdown moderates the life science sector’s recent rapid expansion. Although the ongoing reduction in venture capital funding and dearth of equity financing is causing many life science companies to slow their expansion, Anderson adds that federal policymakers are doing more than ever in terms of life science investment. Proposed National Institutes of Health funding is up substantially for fiscal 2023, and that’s in addition to the Biden administration’s $2 billion in investments to expand U.S. biotech and biomanufacturing.

Deals

Square Mile Capital, Bank OZK arrange $202.6M construction loan for Bioterra life sciences development in San Diego

REBusiness Online – December 15

Square Mile Capital has closed a $202.6 million loan to finance the construction of Bioterra, a life sciences development in San Diego’s Sorrento Mesa submarket. Bank OZK co-originated the loan. Longfellow Real Estate Partners is developing the 316,000-square-foot project. In August, Longfellow broke ground on the six-story campus that will feature lab and office space and three stories of subterranean parking.

Gemini Rosemont pays $59M for Bay Area life science asset

Commercial Property Executive – December 23

Gemini Rosemont Commercial Real Estate has acquired Peninsula Life Science Center, an eight-story life science building in Burlingame. The company partnered with Gemini Investments for the $59.4 million, all-cash purchase. Cushman & Wakefield represented the seller, a joint venture between Sansome Street Advisors and Gordon Brothers.

Harvest Properties to expand East Bay life science campus

The Real Deal – December 13

Oakland-based Harvest Properties received approval to move forward with its expansion of an East Bay life science campus named Emeryville Bay Center. Harvest is looking to capitalize on the Bay Area life science market, which has remained robust, despite a slight slowdown compared to earlier in the year. The development will expand the three-structure campus at 6425-6475 Christie Avenue with a new mixed-function building totaling 210,000 square feet.

Vacaville approves new biomanufacturing campus in Vaca Valley Business Park

ABC10 – December 8

The Vacaville planning commission unanimously approved Axiom Point, a 375,000-square-foot biomanufacturing campus in the Vaca Valley Business Park. The project is designed to include space for biomanufacturing, laboratory research and development, medical device manufacturing, food science, agricultural technology, and healthcare, according to the city. Axiom Point is the first project since the city launched its Biotech Strategy in 2019 and was processed in just 90 days.

Spur Capital seeks to develop 900K-SF life sciences project in Berkeley

Bisnow – January 4

Spur Capital Partners wants to build an eight-building, 900,000-square-foot life sciences development at 640 Gilman St. in Berkeley, which would require a significant rezoning. Rhoades Planning Group submitted a rezoning application on behalf of Spur Capital. The application seeks to rezone 15 parcels, as reported by the San Francisco Business Times. A planning application has not yet been submitted, but the project, currently titled Gilman Gateway, would span close to four city blocks across several different addresses.

Life science company triples size via Fremont office relocation

The Mercury News – December 6

A life sciences firm that is crafting ways to combat cancer has more than tripled its office space with a relocation to Fremont and an exit from Menlo Park. The state-of-the-art facility that Personalis has leased is one of the largest genomic-sequencing laboratories in the world, according to the company.