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News release

MINNEAPOLIS, MN

Life Sciences Industry Continues Growth Trajectory in Twin Cities

JLL report ranks Twin Cities in top 10 based on talent pool, overall economy and availability of capital


MINNEAPOLIS, September 15, 2015—In its national Life Sciences Report, JLL ranked the top cities within the industry in the US. Once again the Twin Cities fared well, ranking in the top 10 and actually moved up one place to number 8 in 2015.

“Minneapolis and the overall Twin Cities’ area continued to be one of the dominant Life Sciences markets in the country because of the continuation of trends that have been existence for some time,” said Brian Ginkel, a Managing Director with the JLL Minneapolis office and its Life Sciences expert. “Those factors include the ready accessibility to and of talent, a strong overall economy, and the plentiful supply of capital.”

A summary of trends that all have aligned to the benefit of the Life Sciences industry, according to Ginkel, includes:

  • One of the most notable ongoing trends is the access to talent in the Twin Cities area. Feeder systems to the Life Sciences industry include 3M, Medtronics, St. Jude Medical and University of Minnesota Research, to name just a few.
  • As is the case with most industries, and particularly with the Life Sciences industry, a rising tide (strong economy) lifts all ships (companies); as the economy continues on a roll, there are greater opportunities for all companies, start-ups, small firms and large companies, to take their businesses to the next level.
  • Among the leading sectors in Life Sciences include technology firms and cancer research firms.
  • Med-tech firms are growing at a faster rate than med-device firms; these firms are more solution-driven and benefits-oriented—certain of these firms provide the technological platforms that allow firms to grow, expand and/or be more efficient.
  • Capital is “plentiful” and lots of investment allocations are being made; investments—from venture capital funds and other means—surpass $430 million and likely are even greater because it is very difficult to track investments under a certain threshold.

“As the Life Sciences industry goes, so goes the commercial real estate markets—specifically those that support tenants within that space,” said Ginkel.

Among the top or most notable and representative transactions that have taken place that demonstrate the strength of the Life Sciences Industry in Minneapolis and showcase the implication it has on the commercial real estate markets include:

  • Olympus Surgical Technologies which developed a $36 million, 180,000-square-foot medical device manufacturing facility in Brooklyn Park, MN that will also serve as a global training facility.
  • Uphire Smith Labs has expanded its presence in Plymouth, MN by 135,000 square feet to better position the company for further growth and expansion.
  • Creganna Tac-tix Medical Device, in response to explosive growth, has expanded its facilities in Plymouth, MN to 100,000 square feet from 20,000 square feet.

According to Ginkel, the area’s standing as one of the top Life Sciences markets in the country will only strengthen “as the economy stays strong and dynamic”.

Companies, from start-ups to those with rich and colorful histories, he noted, are looking for markets that have an established track record in access to a strong labor force, investment opportunities, company growth, academia and a great quality of life.

“Those are all attributes the Twin Cities can claim, and they aren’t likely to change, making Life Sciences somewhat of a recession resistant industry in the area,” he concluded.

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estateservices to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500company with annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230corporate offices, operates in 80 countries and has a global workforce of approximately 58,000.  On behalf of itsclients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billionsquare  feet,  or  316  million  square  meters,  and  completed  $118  billion  in  sales,  acquisitions  and  financetransactions in 2014. Its investment management business, LaSalle Investment Management, has $56.0 billionof real estate assets under management. JLL is the brand name, and a registered trademark, of Jones LangLaSalle Incorporated. For further information, visit www.jll.com.​