The life science ecosystem in Houston is one of the strongest in the country, and is now the 11th largest life science real estate market we track. With slightly under 5 million square feet of space, Houston is a scale below the three primary hubs (Boston/San Fran/San Diego) but is now established as an important cluster. The map below shows life science properties within the Houston metro-area, with purple bubbles representing operating properties, and orange representing construction. The majority of properties are centered around the Texas Medical Center, with some properties scattered throughout the greater metropolitan area. Some of the larger construction projects include MD Anderson Biosciences Research Facility and the UT Health Houston Public Health Education & Research Building.
There is a total of 1.3 million square feet of construction in Houston, up 24% year-over-year. Fundamentals are strong with an occupancy rate of 88.5%. Ownership of Houston life science space is split 50/50 between investors and user owners. Compare this to the top 3 markets, which are 84% investor-owned. Since Houston is more user-driven, there has been less speculative space, leading to more stable occupancy.
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