The life science industry is an endless frontier of discovery and innovation springing from top universities, research institutions, medical schools and hospitals.
At BioMed Realty, we build lasting, deep relationships across the growing industry we serve, bringing academia and the private sector together at our world-class research facilities in core innovation districts. For our tenants and our stockholders, the impact has been significant.
We continue to make our mark in communities across our portfolio by contributing to economic development, urban revitalization and sustainable design. Through the environments we create, we support new discoveries and advancements in the areas of science, technology, health care and education. And, like the life science industry itself, there is so much more to come.
The need for specialized real estate that fulfills the exacting requirements of the life science industry is strong and getting ever stronger.
In fact, just as our co-founders Alan Gold and Gary Kreitzer recognized over 25 years ago when they developed the business model for investing in life science real estate, the demand for optimal environments that support transformational research and groundbreaking science continues to grow.
Today, we are very excited about the reality that, in terms of understanding and addressing diseases and health issues, the life science industry is still in the early stages of its potential and growth, with a pace of innovation that has never been greater or more promising. We continue to fulfill our role by creating spaces that foster innovation in the best markets for research and development.
Our tenants are at the forefront of the industry, working across the spectrum of scientific discovery in areas such as gene editing, gene therapy and immuno-oncology. To support their growth, we continue to focus on large, established life science centers, including Boston/Cambridge, the San Francisco Bay Area and San Diego. We are also shaping vibrant innovation districts in places like Philadelphia, Seattle, St. Louis and Winston-Salem, North Carolina.
In all of our markets, academic institutions enable the development of top talent and technologies that create the need for the specialized facilities we provide for our tenants to thrive. In turn, they are creating jobs, driving the economy forward and commercializing new treatments and therapies. In the years ahead, we will lead the way as we continue investing in central innovation districts for the future.
The need for new discoveries and better health care has never been greater. The core, underlying demand drivers for the life science industry – an aging population, longer life expectancies and the call for more effective treatments – these trends will not change.
At the same time, scientists are still working to understand many important diseases, such as cancer, HIV-AIDS, Alzheimer’s disease and pandemics, in order to sustain and improve people’s lives. The drive for innovation is as strong and enduring as ever.
As venture capitalists, the public sector, university leaders, philanthropists and institutional investors well know, the global appetite for new technologies and drugs is only expected to grow. In fact, as seen in 2014, we expect capital investment in biotech companies will continue to support ever-higher levels of funding for groundbreaking research.
Initial public offerings for life science companies had a tremendous year in 2014, with 106 IPOs in the U.S. raising $9.3 billion – as well as a healthy number of follow-on public offerings. The life science industry continues to enjoy access to capital from a wide range of sources, including the public markets, private capital, charitable giving and public sector funding from the National Institutes of Health and increasingly other agencies. These steady, sustained capital inflows will be fueling new research and discovery by our tenants and the life science organizations of all shapes and sizes for years to come.
For BioMed Realty, the opportunity in front of us is immense and inspiring. As our tenants advance their programs and bring new treatments to market, we see even more growth ahead. With our specialized expertise, we are positioned to command an industry-leading share of leasing requirements from new and existing tenants alike.
In the years ahead, continuing to develop and maintain valuable, durable relationships and collaborations will be an even more critical success factor for the life science community.
Fostering a culture of collaboration means forming more partnerships with universities, research institutions and pharmaceutical and biotechnology companies across the industry. It also means forging ties with the accelerators, incubators and sources of capital that will generate the next generation of start-ups and spin-offs.
BioMed Realty excels at creating new collaboration opportunities that drive innovation by working closely with our partners. We will continue to bring together thought leaders from academia, biotech and pharmaceutical companies and the investment sector – all to contribute to the ongoing success of our tenants.