Biotech real estate in the Bay Area is expected to see renewed activity as Biogen plans to expand. Massachusetts-based biotechnology company, Biogen, acquired Human Immunology Biosciences Inc. last year, and now they are aiming to expand further with a new space in the Bay Area.
Highlights
- Biogen, a leading biotechnology company based in Cambridge, Massachusetts, plans to establish a West Coast hub.
- This decision is expected to uplift the Bay Area’s biotech real estate market.
- Biogen also acquired HI-Bio last year and is on a constant lookout for expansion.
Biogen is Ready to Expand on the West Coast
Biotech real estate in the Bay Area saw four years of very slow growth after life sciences investors pulled back from the region. During the pandemic, there was a boom in lab and office spaces for life science needs, but after that, the situation has been quite gloomy. Employees were laid off, drug development was delayed, and investors stepped back.
The news from Biogen about opening a new West Coast shop came in as a ray of hope. Biotech buildings reported a 28% vacancy rate in the previous quarter, a number that may decrease with upcoming developments. Funding dynamics have also increased in the area with March’s ending data reaching the $3 billion mark.
HI-Bio’s Acquisition by Biogen
Human Immunology Biosciences is a clinical-stage biotech company that was acquired by Biogen in July 2024. It was a $1.8 billion acquisition, after which the company is now collectively planning to set up a West Coast hub.
HI-Bio had a 9,000-sq.-ft. office and research facility when the merger took place. It was located at 6000 Shoreline Court on the East Grand Ave side of the town, which then doubled its employees from 50 to 100. The West Coast expansion is expected to triple the number of offices and labs.
HI-Bio develops specific drugs for immune-mediated diseases, while Biogen focuses on multiple domains, specifically neurological disorders. Both companies are hopeful about progress upon combining their power and talent. That hope is reflected in the expansion decisions taken by Biogen.
