When it comes to life science, the Midwest is often overshadowed by the core coastal hubs. However, the Midwest contains a strong ecosystem built on industrial infrastructure and solid talents pools. Revista is tracking over 56 million square feet of life science space in the Midwest region, with Chicago as the largest market by a large margin. Chicago contains 11.6 million square feet, with Minneapolis in second at 4.6. Most of the markets across the Midwest are anchored by user-owned pharmaceutical campuses with a handful of university and investor-owned lab buildings sprinkled in. To be specific, the overall ownership split is 68% life science/pharma, 16% investor/REIT, and 16% University/Health System.
The list on the right clearly shows the major presence of pharmaceutical companies like Abbot and Pfizer. Trammell Crow is the lone investor-owner to make the top list, and if we extended it further, we would see a couple of REITs with a 600k square feet each. About half of the investor-owned space is concentrated in Chicago and Minneapolis. In comparison to the rest of the Midwest, the Chicago market has struggled intensely with the supply/demand balance. Investor-owned space in Chicago suffers from higher vacancy rates than any of the core hubs across the US. Despite these struggles, the biomanufacturing ecosystem will continue to grow in the Midwest. Growth will create opportunities for real estate stakeholders, so make sure you are keeping an eye on more than just the coastal hubs.
