Excerpt from SFChronicle:
“In the battle for San Francisco real estate, biotech firms will always be outgunned.
“You don’t see biotech growing at the same rates as the high-flying technology companies,” said Chris Haskell, who runs Bayer’s innovation center in Mission Bay. “Biotech is just more capital intensive.”
Whereas software startups can quickly expand, a drug startup requires 10 to 15 years to even get a product to market. You don’t need federal approval to release a mobile app. Biotech firms, however, must get past the Food and Drug Administration, an agency not exactly known for speed.
So a biotech startup can’t afford to just fork over $125 million to build a 422,000-square-foot headquarters in Mission Bay, as 6-year-old Uber recently did along with Alexandria Real Estate Equities.”