Strong employment in Vancouver's life sciences sector could support healthy levels of commercial real estate activity in the region, according to a new research report.
Life sciences employment totals 14,300 locally with a 10-year growth rate of 105.3 per cent, according to a March 11 report from commercial real estate services firm Cushman & Wakefield Inc.
The company said there has been a 33-per-cent increase in university degrees awarded in this field, with 1,740 degrees granted in 2021 compared to 1,311 in 2011.
“Vancouver’s life sciences industry is underpinned by a highly skilled workforce, prime location and high quality of life,” said the report.
Zooming out, real estate supply and demand are rebalancing in the global life sciences sector, as excess inventory leads to softer rent growth and higher vacancy rates in many markets.
Challenges for the sector include uncertain U.S. government funding, difficulty in filling some positions and negative total returns for the last three years.
The report said strong fundamentals include “a robust pipeline” of new drug development, increased domestic production and the embrace of artificial intelligence to improve workflows, clinical trials and other processes.
In its analysis of the Vancouver region, the report said B.C. is home to more than 300 life sciences companies, including biopharmaceutical and medical device companies.
The city’s new St. Paul’s Hospital and health campus, which will be located near Pacific Central Station once construction is complete, has been a catalyst for local real estate activity.
The project has spurred significant interest in the surrounding neighbourhood from notable life sciences companies including AbCellera Biologics Inc. (Nasdaq:ABCL), Zymeworks Inc. (Nasdaq:ZYME), Aurinia Pharmaceuticals Inc. (Nasdaq:AUPH), Aspect Biosystems Ltd. and Stemcell Technologies Canada Inc., said the report.
The report also noted the boosts provided by government incentives and infrastructure; the completion of the National Biomanufacturing Training Centre at BCIT; and a nearly $200-million partnership between Aspect Biosystems and the governments of B.C. and Canada that will create more than 200 jobs and drive the development of cutting-edge bio-printed tissue therapeutics.
