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Released October 20, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The economy may be in an uproar, and the world cloaked in uncertainty, but Industrial Info's research group for the Pharmaceutical & Biotech Industry is tracking 213 North American new-build projects with a 2022 start date. Those projects represent a potential investment of more than $20 billion.
The projects range from Cube Psytech's (Vancouver, British Columbia) $1 million psilocybin lab in Canada, to FUJIFILM Diosynth Biotechnologies' (Durham, North Carolina) $2 billion mega "Project Galaxy" in North Carolina. The traditional industry clusters on the east and west coasts are staying strong, but locations across the U.S. and Canada are sprouting up.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Pharmaceutical & Biotech Project Database can read detailed reports on the Cube Psytech and FUJIFILM projects.
Click on the image at right for a map indicating hot spots for 2022's new plant construction kickoffs in the North American Pharma-Bio Industry.
Some are grassroot projects, such as Scorpion Biological Services' (San Antonio, Texas) $650 million biological threat vaccines CDMO plant in Pennsylvania, while others, including Spark Therapeutics Incorporated's (Philadelphia, Pennsylvania) $575 million cell and gene therapy CDMO project in Pennsylvania, are brownfields. Subscribers can read detailed reports on the Scorpion and Spark projects.
In fact, brownfield construction leads with 142 projects, twice as many as the 71 grassroot sites. Interestingly, the total investment value for both types is almost dead even: brownfields at $10.6 billion, grassroots at $10.2 billion.
The cost savings associated with brownfield projects are among the biggest reasons they remain a popular option. Couple this with an accelerated construction schedule, and the attraction is only enhanced.
Almost 20 years ago, Novartis AG (NYSE:NVS) (Basel, Switzerland) led the charge when it came to making a splash with brownfield construction in the industry, particularly with its stunning transformation of the New England Confectionary Company (Necco) factory in Cambridge, Massachusetts. As first reported by Industrial Info in 2002, the company transformed the 1920's candy plant into a $500 million project launching the Novartis Institute for Biomedical Research (NIBR).
Existing structures can offer a number of advantages, including expedited zoning with manageable modifications. Having already housed commercial/industrial space, residents in the area might voice considerably less opposition that what often greets a new life-science grassroot project.
There is much to consider when looking at the reuse of an existing building, such as structural systems, floor-to-floor height, and appropriate chemical storage allowances.
Real estate investment trusts (REITs) have taken the brownfield development to a whole new level. Billions of dollars are being invested to carve out massive life-science campuses or stand-alone facilities. These projects find strong incentives from local governmental entities that are anxious to avoid shuttered buildings.
Companies such as Alexandria Real Estate Equities Incorporated (Pasadena, California), BioMed Realty (Blackstone) (San Diego, California) and JLL (NYSE:JLL) (Chicago, Illinois) continue to flourish in this market, with many more getting on the life science bandwagon. As demand for lab space rises, the overall vacancy rate of the top 12 life-science markets fell by 10 basis points (bps) in 2Q22 to 5.2%.
Subscribers to Industrial Info's GMI Project Database can click here for a list of detailed reports for projects mentioned in this article. Subscribers to Industrial Info's GMI Plant Database can click here for a list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
The projects range from Cube Psytech's (Vancouver, British Columbia) $1 million psilocybin lab in Canada, to FUJIFILM Diosynth Biotechnologies' (Durham, North Carolina) $2 billion mega "Project Galaxy" in North Carolina. The traditional industry clusters on the east and west coasts are staying strong, but locations across the U.S. and Canada are sprouting up.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Pharmaceutical & Biotech Project Database can read detailed reports on the Cube Psytech and FUJIFILM projects.
Click on the image at right for a map indicating hot spots for 2022's new plant construction kickoffs in the North American Pharma-Bio Industry.Some are grassroot projects, such as Scorpion Biological Services' (San Antonio, Texas) $650 million biological threat vaccines CDMO plant in Pennsylvania, while others, including Spark Therapeutics Incorporated's (Philadelphia, Pennsylvania) $575 million cell and gene therapy CDMO project in Pennsylvania, are brownfields. Subscribers can read detailed reports on the Scorpion and Spark projects.
In fact, brownfield construction leads with 142 projects, twice as many as the 71 grassroot sites. Interestingly, the total investment value for both types is almost dead even: brownfields at $10.6 billion, grassroots at $10.2 billion.
The cost savings associated with brownfield projects are among the biggest reasons they remain a popular option. Couple this with an accelerated construction schedule, and the attraction is only enhanced.
Almost 20 years ago, Novartis AG (NYSE:NVS) (Basel, Switzerland) led the charge when it came to making a splash with brownfield construction in the industry, particularly with its stunning transformation of the New England Confectionary Company (Necco) factory in Cambridge, Massachusetts. As first reported by Industrial Info in 2002, the company transformed the 1920's candy plant into a $500 million project launching the Novartis Institute for Biomedical Research (NIBR).
Existing structures can offer a number of advantages, including expedited zoning with manageable modifications. Having already housed commercial/industrial space, residents in the area might voice considerably less opposition that what often greets a new life-science grassroot project.
There is much to consider when looking at the reuse of an existing building, such as structural systems, floor-to-floor height, and appropriate chemical storage allowances.
Real estate investment trusts (REITs) have taken the brownfield development to a whole new level. Billions of dollars are being invested to carve out massive life-science campuses or stand-alone facilities. These projects find strong incentives from local governmental entities that are anxious to avoid shuttered buildings.
Companies such as Alexandria Real Estate Equities Incorporated (Pasadena, California), BioMed Realty (Blackstone) (San Diego, California) and JLL (NYSE:JLL) (Chicago, Illinois) continue to flourish in this market, with many more getting on the life science bandwagon. As demand for lab space rises, the overall vacancy rate of the top 12 life-science markets fell by 10 basis points (bps) in 2Q22 to 5.2%.
Subscribers to Industrial Info's GMI Project Database can click here for a list of detailed reports for projects mentioned in this article. Subscribers to Industrial Info's GMI Plant Database can click here for a list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
