uploads/2016/01/C2-PROP1.png

An Overview of BioMed Realty’s Specialized Property Portfolio

By

Updated

BioMed Realty’s specialized facilities

BioMed Realty Trust (BMR) mainly focuses on laboratory and office space for the life science industry. Life science companies require specialized facilities comprising a mix of office, laboratory, testing, and manufacturing facilities to support their activities.

The interiors of the company’s properties are uniquely designed to fulfill the specific needs of life science customers like higher ceiling heights, reinforced concrete flooring, and laboratory benches, among others. As a result, converting traditional office space into a laboratory is not always feasible. This is also the reason why traditional commercial real estate companies have not ventured much into providing space to life science companies. Because of the unique design, these properties have long-term value and utility to science and technology clients.

Article continues below advertisement

Property portfolio

The total property portfolio of the company has witnessed a healthy growth during the past five years. The total rentable area of the company increased from 12.2 million square feet in 2010 to 17.5 million square feet in 2014. During the first nine months of 2015, the company acquired a number of properties which increased its rentable area to 18.9 million square feet. In addition, the company had a land bank consisting of a rentable area of 6.4 million square feet as of September 2015.

BioMed Realty’s opportunities

The life science industry in the US is expected to grow rapidly over the next few years generating demand for high-quality space, which will create new opportunities for BioMed Realty. According to Deloitte’s 2015 global life sciences sector outlook, the healthcare expenditure in North America is likely to grow by 5.2% annually till 2018. This is expected to continue the growth momentum for office space for companies like BioMed Realty.

Competition and ETF exposure

Other major office REIT (real estate investment trust) players including SL Green Realty (SLG), Boston Properties (BXP), and Kilroy Realty Corporation (KRC) mainly focus on office properties, although some are present in retail and residential properties as well. BioMed Realty makes up approximately 0.8% holdings of the SPDR Dow Jones Wilshire REIT ETF (RWR).

In the next part of this series, we’ll discuss BioMed Realty’s geographic coverage.

Advertisement

More From Market Realist