Just after the coronavirus erupted worldwide, investments in the biotech sector surged as scientists raced to find vaccines to combat the pandemic. In 2020, venture capitalists invested $36.6 billion in biotech, a staggering $11.3 billion increase from the year before. Even as the vaccine-craze has lessened, there has still been a growing demand for biotech and life sciences, and this is evidenced in the rise of life science commercial real estate. Here, we’ll delve into what life science commercial real estate entails — and how you can capitalize on this investment opportunity by streamlining your operations with a unique software solution.
What is Life Science Commercial Real Estate?
First, an important question: what exactly are life science properties? These buildings include laboratories, pharmacies, and any other office spaces or buildings that are designed specifically to facilitate the advancement of healthcare, medicine, or science. These commercial real estate properties might be used for biotechnology, pharmaceuticals, or research. Medical device companies also are part of this umbrella.
Now, how are these properties different from other types of commercial real estate buildings? First, these properties might be adapted to fit the unique, specialized needs of their tenants. For instance, a life science building might require certain HVAC requirements to enable proper ventilation of chemicals. It might need specific laboratory equipment or elements, like an eye washing station. Perhaps the property needs hazardous waste disposal. Whatever the requirements are, life science commercial real estate tends to have more specialized needs, which typically results in higher rents than the average commercial building.
Where are Life Science Properties More Prevalent?
There are distinct locations throughout the country where you’ll find an abundance of life science commercial real estate. These properties tend to be more prevalent in areas close to academic institutions and research facilities, with a vast science talent pool, and near venture capitalists who are eager to fund research opportunities. Let’s dive into where life science properties are most commonly found:
- Boston: Harvard University, located in Cambridge, Massachusetts which is just a few minutes from Boston, is one of the foremost institutions for life science research. MIT is also nearby, and is another top research university.
- San Francisco: The San Francisco Bay area is a popular location for the life science and biotech industries. San Francisco encompasses about 36.3 million square feet of lab space. Home to popular research institutions like Stanford University, the Bay area is a pioneer in life science commercial real estate.
- San Diego: San Diego is another top research cluster in the nation and in 2022, designated 31.6 million square feet of construction space for life science real estate. The University of California – San Diego is another influential research institution.
- New York/New Jersey: This metro area produces the most graduates of biomedical and biological sciences. Home to renowned research institutions like Princeton University, New York/New Jersey is rapidly becoming a life science hub on the East Coast.
Leverage Life Science Opportunities with Comprehensive Software
The life science industry is booming and the opportunities are out there for forward-thinking investors looking to fund world-changing research. Take advantage of this moment by leveraging the latest technology to your benefit. Find an investment management platform that will streamline your operations so you can focus on closing your next transaction.
One of the most important aspects you should look for in your software solution is CRE banking. Your platform should have embedded banking features that allow you to open accounts quickly and easily, and move money in an instant via ACH debit between relevant parties. Distribution payments are complex so a solution that calculates those payments for you is invaluable. Better yet — find a platform that enables you to earn a high-yield APY so you can earn revenue on your committed capital even while it sits uncalled.
Maintain regular communication so that all your investors are up-to-date on the latest happenings with your life science property. A comprehensive investor portal is imperative for streamlining communications. It can help you manage documents, display thorough performance reports, organize payments, and it can even help you fundraise for more capital.
Covercy Can Help You Streamline Operations for Your Life Science Commercial Real Estate
At Covercy, we are ready to help you leverage our advanced technology to capitalize on opportunities in commercial real estate. Our software solution is not a standard investment management platform. It is unique because financial payments are embedded right into the systems and it can also integrate with other external property management software, like Quickbooks. Instead of manually entering information into a system, Covercy allows you to get back time in your day by streamlining complex processes, like distribution payments. With Covercy, you can also fundraise with capital calls seamlessly and give your investors access to comprehensive reporting features so that they stay updated with the latest news on your project.
Life science commercial real estate is paving the way for innovative advancements in healthcare and technology. You should be a part of this biotech revolution. Enhance communication and streamline your investment processes with Covercy. Book a free demo today to get started.
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