In 2011, Massachusetts continued to lead the nation in biotech-related construction, a trend that is expected to accelerate in 2012.
The life sciences supercluster in Massachusetts is a major engine for the state’s economy, including our commercial real estate market. Construction is an area hit hard nationally by the recession, but it has managed to weather the storm in Massachusetts due largely to the steady flow of construction projects from life sciences companies. Even as some major global companies are shedding jobs elsewhere, they are making strategic investments in Massachusetts, including major new construction.
These major capital investments in our biopharma sector are bringing thousands of jobs to Massachusetts, in both the industry and building trades. The Massachusetts Life Sciences Center has been pleased to play a role in supporting several of these major projects through our $25-million-per-year Life Sciences Tax Incentive Program and other investments.
According to a recent report from Richards Barry Joyce & Partners, of the 2.6 million square feet under construction in the Boston/Cambridge area, more than 2 million square feet will be used for laboratories or offices in the biotechnology industry.
Well-known biopharma companies such as Pfizer, Vertex, and Biogen Idec are among those involved in these construction projects. Vertex’s project in the South Boston Innovation District, at $1.1 million square feet, is the largest private construction project underway anywhere in the United States.
New Facilities Planned
The year ahead looks promising as well. Novartis, the Broad Institute and Ipsen all will break ground on new facilities in Massachusetts in 2012. The Novartis project will be a $600-million, three-building laboratory and office complex that will serve as the focal point of the company’s worldwide research operations. Ipsen will invest $45 million in renovation and construction at its Biomeasure unit in Milford, including a new 62,000-square-foot research and development facility.
In addition to major global players who continue to expand their presence in Massachusetts, small and mid-sized international companies are choosing Massachusetts as the best entry point to the U.S. market. Recent examples include Israel-based EarlySense, locating in Waltham, and New Zealand-based Izon, locating in Cambridge. British-based IDBS expanded its footprint in Burlington this year, and H3, a cancer drug discovery company funded by Japan’s Easai, opened offices in Kendall Square, Cambridge.
Domestic companies relocating to Massachusetts include California-based Inspiration Biopharmaceuticals, which has announced plans to relocate to Massachusetts in 2012.
Life Sciences Initiative
Massachusetts’ position of global leadership in the life sciences is key to these companies’ investment decisions, including our world-class universities, teaching hospitals and research institutes, talented workforce, active venture community and our state’s 10-year, $1 billion Life Sciences Initiative. The initiative was first proposed by Gov. Deval Patrick in 2007, and passed by our Legislature in 2008.
The Center’s Accelerator Loan Program supports early-stage companies and many of these young, home-grown firms are contributing to the state’s real estate growth. In 2011, Avaxia Biologics moved into 8,000 square feet in Lexington; Good Start Genetics signed a lease for 11,000 square feet in Cambridge; and InVivo Therapeutics established its headquarters in 21,000 square feet in Cambridge.
A recent report from Jones Lang Lasalle ranks the Boston area number one among U.S. life sciences clusters. In 2012, we look forward to showcasing all that Massachusetts has to offer as we host the 2012 BIO International Convention in June, and the 2012 AdvaMed convention in October.
The Life Sciences Center will continue to make the investments necessary to strengthen Massachusetts’ global leadership in life sciences, and ensure the continued growth of these important sectors of our economy.
Susan Windham-Bannister is president and CEO of the Massachusetts Life Sciences Center, www.masslifesciences.com.
