Says David Hayes, CEO and president of Skyline Construction, "We anticipate that life science construction projects will increase significantly this year over last. We are well-positioned to be a strong player in this growing market both in the Bay Area and throughout the country." In November 2009, the Cancer Research Center of Hawaii, one of 60 National Cancer Institute facilities nationwide, selected Skyline Construction's Life Science and Technology Division to develop and manage a project that will include the design and construction of a 150,000-square-foot, four-story LEED Gold certified building next to the John A. Burns School of Medicine on the University of Hawaii at Mānoa's campus.

With a budget of approximately $120 million, the CRCH will use the facility to conduct research for cancer cures. The project is funded by the State of Hawaii and is under University of Hawaii control. Skyline will provide development and project management along with the Kobayashi Group, a Honolulu-based developer. The project s scheduled for completion by the end of 2012.

Life sciences projects are one segment of the office and medical office sectors in which development and investment have been continuing throughout the recession, and many observers believe that the US government's focus on health care—along with demographic trends that are pushing demand—will produce a long-term demand for such facilities for the foreseeable future.

On the investment side, Newport Beach, CA-based Nationwide Health Properties Inc. recently acquired five Southern California medical office buildings totaling 590,000 square feet from San Diego-based Pacific Medical Buildings for $211 million. As part of the deal, the REIT assumed debt of $105 million at 5.8%, maturing in 7.5 years.

Nationwide's earnings and its success in raising new capital also illustrate how the life science, healthcare-related and medical office segments have been outperforming the general office market. During the fourth quarter of 2009, for example, Nationwide issued 2.3 million shares of common stock through an at-the-market equity offering program at an average price of $33.27 per share, resulting in net proceeds of approximately $76.2 million. From Jan. 1 to Feb. 16 this year, the REIT issued 635,000 shares of common stock at an average price of $35 per share, resulting in net proceeds of approximately $22 million.