A New Biotech Hub is Emerging in the Bay Area

It’s no secret the Bay Area has been a stronghold of biotech innovation. Now it appears the area is about to get stronger as more space for pharma and biotech companies will soon be available down the Peninsula south of San Francisco in the city of San Carlos.

The new space for biotechs is available following investments from Alexandria Real Estate Equities in the city. The investment group acquired about one million square feet of office space. Alexandria is well-known for its deals with biotech companies. According to The Daily Journal, Alexandria acquired two buildings that both provide more than 500,000 square feet of office space in San Carlos.

The two office buildings acquired by Alexandria aren’t the only indications the city is setting itself up as a potential biotech hub. The Daily Journal reported that QB-3 Biolabs and Dewey Land Company have acquired space in the city that will allow for the creation of a biotech incubator. The two companies also launched an incubator in San Francisco about four years ago, the Journal said. San Carlos Community Development Director Al Savay told the Journal that the city has "quietly been gaining momentum in the area of biotechnology growth."

While California is home to two major biotech hubs, in San Diego and the San Francisco Bay Area, Sara Radcliffe, president and CEO of the California Life Sciences Association, told the Journal that growth does not appear to be slowing across the region. In 2015 and 2016, the Bay Area was the number one region in total life sciences employment.

"This last year, Bay Area counties employed 72,663 people in life sciences — 24 percent of the state’s total life sciences employment. Established companies continue to grow and investments in building more life science companies have continued throughout the Bay Area," Radcliffe told the Journal.

Alexandria has had a busy start to 2018. At the J.P. Morgan Healthcare Conferencein San Francisco, the group announced the launch of a new fund. Alexandria Venture Investments launched the Alexandria Seed Capital Platform, a novel and innovative seed-stage life science funding model. Alexandria Venture Investments will vet seed-stage companies of interest through the Seed Capital Platform and guide milestone-driven investments based on the quality and differentiation of a company’s technology, foundational IP, business strategy, financing plan and management team, the company said in a Jan. 8 statement.

Alexandria has expanded its real estate holdings across the United States with facilities in North Carolina, New York and more.  Last year, Alexandria Real Estate Equities, Inc. opened the new Alexandria LaunchLabs at the Alexandria Center for Life Science in New York City. The new innovation center includes 15,000 square feet of lab and office space that is currently the home to 13 startup companies. At capacity, the facility is expected to house about 25 companies.