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

 
 

5G could be taking over Texas — and Houston is leading the way. Photo via Getty Images

Based on one key measure, Houston sits at the forefront of a telecom revolution that could spark a regional economic impact of more than $30 billion.

Data published recently by the Texas Comptroller's Office points out that as of last November and December, Houston led all cities in Texas for the number of so-called "small cells." Small cells are a key component in the rollout of ultra-high-speed 5G wireless communication throughout the Houston area and the country.

As the Texas Comptroller's Office explains, small cells are low-powered antennas that communicate wirelessly via radio waves. They're usually installed on existing public infrastructure like street signs or utility poles, instead of the big communication towers that transmit 4G signals.

The comptroller's tally shows Houston had approved 5,455 small-cell sites as of the November-December timeframe. That dwarfs the total number of sites (1,948) for the state's second-ranked city, Dallas.

"Houston is in the vanguard of small cell permitting in Texas, and not just because it's the state's largest city; advocates have lauded its proactive approach to 5G. Other cities, particularly smaller ones, are lagging well behind," the Comptroller's Office notes.

According to CTIA, a trade group for the wireless communications industry, 5G holds the promise to deliver an economic impact of $30.3 billion in the Houston area and create 93,700 jobs. The group says industries such as health care, energy, transportation, e-commerce, and logistics stand to benefit from the emergence of 5G.

"Maintaining world-class communications infrastructure is a requirement for success in a rapidly changing global economy. Small cells and fiber technology are the key foundational components for network densification and robust 5G. Cities like Houston that have embraced the need for this infrastructure will see the benefits of 5G faster than others," Mandy Derr, government affairs director at Houston-based communications infrastructure REIT Crown Castle International Corp. and a member of the Texas 5G Alliance, tells InnovationMap.

Derr says leaders in Houston have embraced the importance of small-cell technology through "reasonable and effective" regulations and processes aimed at boosting 5G capabilities. Three major providers of wireless service — AT&T, T-Mobile, and Verizon — offer 5G to customers in the Houston area.

"More small cells and fiber provide greater and faster access for the masses, enabling the connectivity that is essential to our businesses today — whether it's accepting payments on a mobile card reader, completing a sale on the go, or reliably reaching consumers where they are," Derr says.

In a blog post, Netrality Data Centers, which operates a data center in Houston, proclaims that Houston is shaping up to be a hub of 5G innovation.

"Houston has always been on the frontline," Mayor Sylvester Turner said during a 5G roundtable discussion in 2019. "It is who we are. It is in our DNA. We are a leading city. We didn't wait for somebody else to go to the moon. Or to be the energy capital of the world. Or the largest medical center in the world. But you don't stay at the front if you don't continue to lead."

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