Dallas-Fort Worth’s reputation as a leader in business and financial services is well established, but another industry that is taking root and growing – life sciences and biotech. An Adolfson & Peterson Construction (AP) team recently attended Bisnow’s Future of DFW Life Sciences event to hear more about the emerging life sciences trends in DFW and how they are shaping the market.
The Plano City Council approved a public-private partnership (PPP) to establish Plano as a major hub for life sciences. The PPP featured a development agreement to support the Texas Research Quarter (TRQ) project and facilitate catalytic investment in the Plano and North Texas communities. The city’s move marked a key step in a broader PPP that would enable Plano to be a life science leader, bringing together multiple public and private sector stakeholders to advance innovation, improve educational opportunities, develop a skilled future workforce and drive long-term economic impact in the community and surrounding region.
We see a need in the market and establishing TRQ is a step in the right direction. DFW has about 4 million square-feet of space in the life sciences sector, which is a fraction of what exists in Boston and San Francisco. The demand for life sciences facilities – ranging from lab space, research and development to manufacturing – is only increasing. AI and tech advancements are accelerating the ability for companies to grow from start-ups and incubators. Additionally, DFW already has the life sciences industry resources with educational facilities, talent and a skilled workforce.
Current life science sites in Dallas include Biotech+ at Pegasus Park, which features an ecosystem of companies, accelerators, investors, universities and talent. A relative newcomer to the industry, UT Southwestern Medical Center and The University of Texas at Dallas opened the Texas Instruments Biomedical Engineering and Sciences Building designed to accelerate training for the next generation and foster medical innovations in late 2023.
As part of a PPP with the City of Mansfield, Admiral Legacy Investments is developing The Mansfield Innovation Community (The MIC). The 1-million-square-feet master-planned community will feature 240,000 square feet of offices/collaborative space, retail and corporate residences as well as parks, trails, education, an innovation hub and corporate headquarters. The city has allocated 18 acres at Heritage and Regency Parkways—currently owned by the Mansfield Economic Development Corporation—to be the epicenter of the planned MIC. The offices are slated to open in summer 2025.
Dallas Fort Worth is considered a secondary life science market that is just starting to get looks from large-scale manufacturers who typically look at Boston, San Diego, San Francisco, etc.
DFW is considered a secondary life science market that is just starting to get looks from large-scale manufacturers who typically look at Boston, San Diego, San Francisco, etc. There is a steep barrier to entry for a life science company coming out of a university, for instance. Independently started companies may need $4-5 million on buildout or come to an incubator space to scale that way. Equipment is expensive for these tech start-ups, incubators and companies spinning out of universities.
Beyond the need for investors, there needs to be government buy-in from the economic development branches to municipal support and grant partnerships. The life cycle of a life science company in an incubator is about 18 months. They either experience success and need to move quickly to graduation space, or they have to pivot to a new project. From a real estate perspective, it requires flexibility and risk-taking for investors. It is hard to do lab work from home, so the need is there but once a lab space is built, they will often stay.
DFW and Texas offer a high quality of life, a plethora of higher education facilities, a skilled manufacturing workforce and collaboration between universities, labs, government and EDCs. DFW benefits from size; bigger is better in this circumstance. We are a hotbed for talent and collaboration. We can use that leverage of population, size and capabilities to work together so we don’t miss opportunities for synergies.
The life sciences industry is advancing rapidly and AP sees opportunities for growth in this burgeoning new industry. Life sciences and biotech are the very heart of the future; it is critical to improving the nation’s health, agriculture and environment.
As we watch the advancement of new technologies, AP continues advancing our expertise and experience in the construction of medical facilities, specialized labs and high-tech projects. We cannot wait to see what is next in the life sciences real estate market across the country.
