Five reasons Dallas-Fort Worth is the next big life sciences hubs
Writer: Mirella Franzese
September 2024 — Dallas-Fort Worth is positioned to take the No.1 spot as the U.S hub for biotech and pharmaceutical industries, as the metroplex maximizes investment in the emerging life sciences market. Here are five reasons why Dallas-Fort Worth is the next big life sciences hub — from the strength of the state’s higher-education institutions, to increased capital investment, availability of commercial real estate space, strategic central location, and a growing number of life science incubators.
1. Strength of regional higher education institutions in supplying the STEM talent pipeline
As the Intellectual Capital of Texas, Dallas is one of the top markets in the U.S. for obtaining a degree in STEM disciplines (science, technology, engineering, and mathematics). DFW colleges and universities consistently rank among the top schools in the state for research and biology, including Texas A&M, UNT-Dallas, UT Southwestern Medical School, and University of North Texas Health Science Center. Partnerships between academic and research organizations also make the city attractive for biomedical companies looking to hire specialized talent. In 2023, Crowdstreet reported that seven different state life sciences enterprises (including UT Southwestern, McKesson, Evolve Biologics, and Texas Health Resources, among others) pledged to hire a combined 1,100 biotech workers from a new academic program— funded by the U.S Economic Development Administration in partnership with Dallas College, Tarrant County College and the University of Texas at Arlington — for positions in labs, manufacturing facilities, and clinics. Access to financial resources and grants, combined with specialized career development programs and a direct pipeline to the labor pool makes Dallas an attractive market for recent STEM graduates. Dallas-Fort Worth currently ranks No. 6 in the country for graduate retention, and over 75% of students choose to stay and work in the metroplex after graduation, according to D Magazine. DFW also boasts the highest talent growth rate in the state of Texas. According to a CBRE press release, DFW produced the 10th largest national graduate class in the biological and biomedical sciences fields in 2022, boosting the demand for research jobs and the growth rate for the regional labor pool, which increased by 17% from 2019 to 2024— a rate which is 3.3% above the national average.
2. Venture Capital Funding and Investment
Dallas attracted $1.6 billion in capital funding dollars for life sciences ventures between 2018 and 2022 – which marked the eighth largest investment in any U.S. market. Growing investment in R&D and biomanufacturing facilities continues to promote the expansion of the life sciences field by supporting the needs of companies in different stages of development. Demand for research and development jobs in Texas also remains high, increasing by 35% over the past decade, which means further investment from public and private organizations. According to Life Sciences DFW, 67% of all its higher education R&D in the metroplex is spent in life sciences. In addition to grant money, federal funding offers attractive incentive programs to companies that relocate to Texas. Last year, The Dallas City Council awarded approximately $8 million in incentives for Bridge Labs, an incubator space for life science startups, which set up headquarters in Pegasus Park. Similarly, the Sid W. Richardson Foundation pledged $2.5 million in grant money to fund engineering programs at Texas A&M-Fort Worth, currently under construction in Downtown Fort Worth.
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3. Purpose-built infrastructure and real estate space
DFW’s ample real estate options and vacant office spaces support the expansion of life sciences companies in the area, which require purpose-built ecosystems to sustain technology and innovation. According to a JLL report, markets like the one in Dallas have “the talent and ideas, but lag in physical infrastructure and funding, indicating markets ripe for growth if given thoughtful development.” To mitigate the need for tech-suited infrastructure, a number of major planned real estate development projects are currently in the pipeline for Dallas, ranging from industrial parks to biomedical facilities and startup incubators. Last year, The Legacy Business Park, a corporate park located just 25 minutes away from the DFW international airport, approved plans to transform their former Electronic Data System headquarters into a 200-acre life sciences lab and office space dubbed the Texas Research Quarter. Another significant development is Pegasus Park, a 23-acre life sciences campus and one of the first biotech hubs in the state, which is a haven for companies, accelerators, investors, universities and talent in North Texas.
4. Strategic Location
Dallas’ central location in North Texas and convenient access to international airport further cements the city’s reputation as a leading market for life sciences companies. In an interview with Invest:, Doug McDonald, the director of economic development of the city of Plano, noted that the city is witnessing significant growth in the life sciences and biotech sectors. “We are also seeing growth in the life sciences and biotech industries. There is a significant demand for pharmaceutical manufacturing space, driven by new federal policies encouraging onshore production. North Texas is a perfect location for this, with its central location and proximity to Dallas Fort Worth International Airport,” said McDonald. The DFW airport is also the second airport in North America with a IATA CEIV Pharma-certified cold storage logistics facility, which is ideal for biomedical product distribution.
5. Growing Life Sciences Market
DFW ranked No. 1 in the U.S. for new tech jobs and No. 5 for fastest growing major life science hub in 2023, which is a major point of attraction for both established and emerging biotech enterprises looking to relocate. Dallas also achieved a Top 3 national ranking in the R&D sector, with a growth rate of 44.5% over the past 10 years, according to the Dallas Regional Chamber. The city’s collection of incubators, accelerators and innovation hubs make it a premier destination for start-ups and high-growth companies, born out of local universities. One example is BioLabs, a 37,000 square-foot facility in Pegasus Park and the first life science incubator in North Texas. Given the city’s focus on supporting entrepreneurship in the life sciences, the “DFW region is on the leading edge of defining new research trends and opportunities in life sciences,” according to the DRC’s Economic Development Guide.
Top image via Pegasus Park
