Dallas-Fort Worth is experiencing a biotech boom that now puts it among the nation’s top metros for life sciences companies.
D-FW cracked the top 20 for the first time, scoring the 16th spot in an analysis by CommercialEdge. The platform examined 45 metros and drew on data from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau and its own research.
Houston, with its 2.1-square-mile, research-oriented medical district, was the highest-ranked Texas city at No. 10. Perennial life sciences leaders Boston, San Francisco and San Diego took the top three spots.
CommercialEdge graded the cities on a composite 100-point scale based on life sciences employment, educational attainment, square feet of real estate and percentage of total office market. It also looked at other factors such as LEED-certified square footage, rental and vacancy rates, and projects in the pipeline.
D-FW received a composite score of 20.6 points, enough to put it in the top third of metropolitan areas. Its strongest measures were “a sizable talent pool and a relatively accessible office market,” CommercialEdge said.
The region also scored well for its educated workforce, with about 744,000 residents aged 25 and older who have at least a bachelor’s degree in a life sciences field.
D-FW also scored high on the average real estate vacancy rate, meaning it’s easy for companies to find new locations at a reasonable price. That makes the metro attractive for startups that want to spend money on research and development instead of high rental prices for lab space.
“We have a lot of runway in the biotechnology sector in DFW, and our assets and reputation are building in a positive direction,” wrote Mike Rosa, senior vice president for economic development at the Dallas Regional Chamber, after several national studies described D-FW as an emerging biotech hub. “Biotechnology is alive and growing in DFW.”
Giants in biotech, biopharmaceutical and medical research have been in North Texas for years and contribute to the region’s large life sciences workforce. Those companies include Alcon, Baylor Scott and White Health, Kimberly-Clark, McKesson, Merck and Tenet Healthcare. Irving-based precision medicine pioneer Caris Life Sciences hauled in a massive investment last year that gave it an $8 billion valuation.
A blossoming ecosystem for startups is also beginning to contribute. BioLabs opened its ninth location in Dallas’ Pegasus Park in March, its first location in America’s heartland. As a biotech incubator, it has already seen successful start-ups enter the market.
Aakha Biologics recently moved out of the BioLabs facility to pursue its own permanent headquarters in Frisco, and BioLabs resident ReCode Therapeutics recently closed a $200 million investment round.
Two years ago, Dallas-based Coldwell Banker Richard Ellis Group, a commercial real estate services and investment firm, described D-FW as an emerging cluster for life sciences company growth and development.
Dallas and Tarrant counties have a combined total employment of nearly 27,000 people in the life sciences sector across more than 1,000 businesses. The sector includes chemical manufacturing, pharmaceutical and medicine manufacturing, medical equipment and supplies manufacturing, scientific research and development services, medical laboratories and diagnostic imaging centers.
“Growing demand for products and services in the life sciences sector is driving an intense search not only for talent but also for real estate to expand existing clusters, as well as form new ones and enhance the national network,” according to CommercialEdge.
