In the last ten years, the biotech landscape of the Triangle has undergone a dramatic transformation, doubling its laboratory footprint and attracting a significant influx of new professionals, thereby elevating its status among investors and industry peers.

The Overview:

Renowned biotech strongholds such as Boston now acknowledge the Triangle as a major competitor, a sentiment echoed in a widely circulated Boston Globe article. The Triangle’s competitive edge lies in its skilled labor force and cost-effective business environment, offering lower expenses for land, construction, utilities, lab leases, and residential living.

Significance:

Biotechnology has been a cornerstone of the Triangle’s economic ascent, turning Research Triangle Park into a household name nationwide. The region is abundant with lucrative job opportunities for individuals with diverse educational backgrounds, from PhD scientists to pharmaceutical manufacturing technicians with community college diplomas.

Growth Metrics:

The life sciences workforce in the Triangle has swelled to about 40,000 as of 2022, a marked increase from the previous decade, per CBRE’s research. The area’s lab and R&D spaces have expanded from 4.4 million to 9.3 million square feet between 2016 and 2023. Furthermore, since 2018, nearly 30 life sciences entities, such as Fujifilm Diosynth and Eli Lilly, have infused $8.9 billion into the region, with commitments to generate approximately 7,000 new jobs.

Focal Point:

The epicenter of this biotech boom is Research Triangle Park, which is currently experiencing a $1.5 billion development surge. The park’s influence has permeated the entire region, with downtown Durham becoming a hub for startups and new pharmaceutical manufacturing facilities emerging from southern Wake County to Sanford. Both Chapel Hill and Raleigh are witnessing a boom in lab construction.

Key Developments:

• Spark Life Science in Morrisville, set to encompass 1.5 million square feet of lab and manufacturing space.

• Pathway Triangle, a 1 million square foot manufacturing campus by King Street Properties.

• Via Labs, Hub RTP’s future lab skyscraper.

• Fujifilm Diosynth’s $2 billion campus in Holly Springs, slated for completion in 2025.

Underpinning Factors:

The trio of premier research universities in the region has been instrumental in driving this growth, securing $1.9 billion in NIH funding in 2023 alone.

Challenges Ahead:

Despite the sector’s robust expansion, there are concerns about rising vacancy rates and the potential deceleration of funding, which could impede the industry’s progress.

Nonetheless:

JLL has lauded the Triangle as the top biomanufacturing market in the country, noting its construction pipeline’s strong foundation compared to other markets like Boston or the Bay Area.

Looking Forward:

Novo Nordisk, the Danish pharmaceutical giant known for the weight-loss medication Ozempic, appears to be gearing up for an expansion in the Triangle, with new land acquisitions and permit applications for its facilities in the region.