CREJ

Page 2 — Health Care & Life Sciences Quarterly — January 2022 www.crej.com A s we usher in 2022, Colorado Real Estate Journal is expand- ing our health care-centric publication to include life sci- ences.While health care real estate remains one focus, as well as senior housing as part of the continu- um of care, the growing demand for life sciences real estate is gaining traction and garnering attention. Life sciences companies gener- ally are defined as those that oper- ate the research, development and manufacturing of pharmaceuticals, biotechnology-based food and medicines as well as medical devices, biomedi- cal technologies, nutraceuticals, cosmeceuticals, food processing, and other products that improve the lives of organisms. Sounds … complicated. However, according to Newmark’s John Jugl, the real estate infrastructure for these “wildly fascinating” sciences is, at its core, very basic.The real estate is fairly generic, typically delivering in shell condition in order for tenants to build out to fit whatever complex sci- ences they’re working on, he said. While much of this research used to be handled in-house by large pharma- ceutical companies, the recent trend is for start-ups to lay the ground work and then be bought by large pharma- ceutical companies. According to Jugl, 18 of the top 25 large pharmas have done business in Boulder. In further support, the Denver-Boul- der market is now considered to be part of the “top tier” of U.S. life sciences clusters, ranking eighth among the nation’s top 10 most attractive metro areas, according to a JLL 2021 Life Sci- ences Real Estate Outlook. Boston is the “indisputable center,” followed by San Francisco, but in terms of industry trends driving demand for lab space, we’re on the map. According to the report, life sciences companies look for communities that have great research capabilities, access to capital, workforce training, Ph.D.s and lower costs. Denver-Boulder checks all these boxes. “Starting about 24 months ago, the Denver-Boulder area began seeing a significant increase in out-of-state life science inquiries.When COVID hit, that interest turned into activity, and we experienced a spike in life sci- ences requirements and leasing – pre- dominantly in the northwest/Boulder area,” said JLL Managing Director Eric Brynestad. “Companies in the cell/gene therapy arena and other diverse uses, including medical devices, have been leasing 100,000-square-foot chunks of space on a regular basis.We don’t see this activity slowing down now that the area is on the national radar and known for its ability to hire talent locally as well as recruit from outside the market.” In an article on Page 12, Jugl and Peter Llorente, a SteelWave executive, discuss the region in greater detail.We’ll be covering this market in each issue of the quarterly going forward and look forward to hearing from readers as to how they’re involved and shaping the space. Michelle Z. Askeland maskeland@crej.com 303-623-1148, Ext.10 4 Life sciences market demand Letter from the Editor Contents It’s time to reshape, reevaluate health care design Ed Anderson Pandemic-prompted trends in asset development Bruce LePage Strategies to combat increasing construction costs Michelle Brokaw Answers to construction supply chain constraints Ted Laszlo and Ryan Bonner Work with regulatory authorities on permit issues Akshay Sangolli and Hank Burns Investor insights into Colorado’s life sciences market John Jugl and Peter Llorente Possible timelines for the senior housing recovery Lana Peck Lifestyle housing trends for active aging campuses Gary Prager New Colorado clinic can be a model for rural areas Jim Pisula 6 8 9 10 11 12 13 14 17 Life Sciences - Page 12 Dann Burke +1 720 528 6362 dann.burke@cbre.com Stephani Gaskins +1 720 528 6346 stephani.gaskins@cbre.com Anna Heiserman 303 583 2099 anna.heiserman@cbre.com saint joseph medical office pavilion 1818 Ogden Street | denver, COLORADO Best Views IN THE METRO AREA VISIT OUR WEBSITE PROPERTIES.CBRE.US/ST-JOSEPHS + New Class A+ Med i cal Off i ce Bu i ld i ng on v i brant, new Sa i nt Joseph Hosp i tal campus + Ground floor reta i l and free covered phys i c i an park i ng + Upper floors and rooftop deck prov i de breathtak i ng v i ews of downtown Denver and the Rocky Mounta i n hor i zon