Up and coming

Houston named a top city for emerging life sciences market

Houston, home to the largest medical center in the world, was ranked the second in the nation for emerging life science clusters. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

From a real estate and employment perspective, Houston is the second in the nation for emerging life sciences market, according to a new report.

CBRE released the top 10 cities for life sciences, as well as nine cities that have seen recent growth in the industry. While the Northeast and California dominated the list of the established markets, three Texas cities took top spots on the emerging list. Austin ranked behind Houston at No. 3 and the Dallas/Fort Worth area claimed the No. 7 spot. The top emerging life science cluster was the Seattle area.

The ranking was based on each metro's three-year growth in life sciences employment, National Institutes of Health funding, life science educational opportunities, number of medical research and health-services institutions, and the amount of high-tech workers.

"We've watched the life sciences sector for quite a few years in Houston as it steadily grew, but within the past few years it has grown exponentially," says CBRE Houston's First Vice President Scott Carter in a release. "TMC3 is obviously going to be a catalyst for continued growth in life sciences."

The growth within the industry has translated from employees and research to real estate, and Carter says CBRE currently has the 224,931-square-foot Texas A&M ALKEK building on the market — most of the facility is laboratory space.

"There has been substantial interest from investors in the top established life science markets," he continues. "They recognize Houston as an emerging market and see the value of placing capital in the Houston area."

The country's venture capital funding for the industry increased 86 percent last year to $15.8 billion, and, according to the release, the lab space under construction in the top five metros for life science growth expanded 101 percent last year to 6 million square feet.

"Multiple indicators point to sustained, strong growth for the life sciences industry, which makes life sciences labs and offices an ideal focus for developers and investors," says Steve Purpura, vice chairman leading CBRE's life sciences business. "Few industries offer this much expansion potential, but much of the activity happens in a select number of special markets."

Via the CBRE report

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Building Houston

 
 

Houston-based Sustainability Ventures Group is focused on connecting energy companies to innovative, sustainable solutions. Photo via Getty Images

As the pandemic took its hold on the economy and the energy industry's commodity crisis did its damage, Patrick Lewis understandably assumed that maybe sustainability initiatives might be on the back burner for his network of energy companies.

"We thought we would hear that sustainability in this environment may have slipped down the priority list, but it was the exact opposite," Lewis says. "Pretty consistently across all the operators, sustainability, reducing emissions, and greenhouse gases — those are all even more important today."

This confirmation that the energy industry is committed to innovative sustainability projects led Lewis to rebrand his energy tech investment group from BBL Ventures to Sustainability Ventures Group, or SVG. The investment team focuses on reverse engineering the startup innovation process by sourcing the concerns and goals of the energy companies, then finding solutions from the startup world through reverse pitch competitions and challenges.

"We're not fundamentally changing our business model or investment strategy, but we just wanted to make sure our messaging was crystal clear," Lewis tells InnovationMap.

Lewis says he and his team really thought through the definition of sustainability, and he specifies that, "we're not doing this to go chase solar or wind power — those are on the table — but we think there are two primary opportunities: Digital transformation and emerging technologies in the existing fossil fuel industry," Lewis says.

He adds that oil and gas is going to be around for a long time still, and he cites that by 2040, it's predicted that 40 percent of energy will still come from fossil fuels. It's the big energy companies and providers — which he's working with — that have the power to move the needle on these changes.

"We think there's a real opportunity to pursue efficiencies and reduce emissions and footprint in that existing traditional oil and gas sector," he says.

Earlier this year, Lewis was addressing these concerns by working on standing up a group of industry experts for regular meetings to discuss innovation needs. What started as a call with a handful of people, now hosts 40 people across 14 energy operator and major tech platforms.

"The whole purpose of this group is to share best practices, collaborate on common pain points, risk manage pilots," Lewis says. "We continue to build that group — it's going to be a nonprofit governed by a steering committee."

While SVG has held off on its reverse pitch events, the organization along with the University of Houston Center for Carbon Management submitted a proposal to host the National Science Foundation's Convergence Acceleratoronvergence Accelerator virtual conference at the end of September.

"The goal is to bring together multidisciplinary stakeholders — industry, nonprofit, academics, NGOs, public policy experts — to solve big problems," Lewis says. "Sustainability is a problem they really want to address."

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