Clinical Trials Key Growth Driver
The Majority of Active Clinical Trials* are Drug Related
Source: Clinicaltrials.gov, *Unique Clinical Trials in the United States, Canada, United Kingdom, & Germany
Clinical trials have varying degrees of impact on real estate demand, depending on what stage they are in:
Each clinical trial phase serves a unique purpose. Generally, phases 1 through 3 must be completed before the drug or device can be considered for FDA approval.
As trials progress through each phase, the number of participants involved increases and more space is needed.
The number of participants involved in a clinical trial is influenced by a variety of factors, with trials in phase 1 generally involving fewer than 100 participants, while trials in phase can include several hundred or several thousand participants.
Roughly 70% of drug trials that begin will proceed to phase 2, and about one-third of those will go on to phase 3.
As trials reach approval, pharmaceutical companies often need additional space for manufacturing, distributing and marketing the product.
Key Takeaway: As clinical trials progress through each phase, they may require more participants and space. Approvals often result in the need for additional manufacturing and distribution space.
FDA Drug and Biological Approvals
Source: U.S. Food and Drug Administration, Fda.gov
Approvals hit a five-year high in 2023, matching 2018 figures with a combined 80 drug and biological approvals.
Once the drug is approved by the FDA, it enters phase 4, where it is available for use by the public and monitored for any adverse events.
To meet increased production needs, manufacturers often need additional space to produce the product. Distribution hubs are also required to ensure the timely delivery to healthcare providers and patients.
FDA approvals also generate interest from investors in a multitude of ways:
Gaining an approval is a powerful confirmation of the underlying science and technology behind the drug.
Not only does the approved drug become more prized, but the perceived value of drugs in the company's pipeline also increases.
Key Takeaway: Approvals soared to a five-year high in 2023, helping to fuel demand for life sciences space and igniting investor enthusiasm.
Active Clinical Trials Enrollment by Market
Source: Clinicaltrials.gov, Food and Drug Administration
Site selection plays a crucial role in the success and duration of a clinical trial. Poorly selected sites can produce low quality data, add unexpected costs and extend timelines up to 50%.
Clinical trial sponsors evaluate several criteria when deciding where to host a trial, including:
Clinical Research Experience: A facility must have staff with relevant training and experience for the type of trial conducted. This helps ensure a successful trial that generates high-quality data and avoids violations.
Adequate Population Profile and Enrollment: The location must have access to an ample pool of participants who meet the requirements of the study. Many eligible candidates are often weary of participating in a clinical trial, which makes a large population profile even more paramount. This makes cities with a large, diverse population, like New York, very attractive.
Historical Performance: Sponsors often assess past performance of other clinical trials that have occurred at a site, including enrollment rate, study delays and protocol violations.
Key Takeaway: Clinical research experience, population and historical performance are used to determine clinical trial site selection. Markets with these characteristics will attract more trials and demand more space.
