Current Life Science Market Conditions H2 2021

Biden’s administration proposals to significantly increase NIH funding (which already grew 37% since 2015) and a series of innovation and competition acts recently passed by Congress may create new research hubs.  Growth will continue to accelerate as Landlords break ground on spec Lab space and those from other sectors such as Office or Residential look to get in on the action through conversions of older vacant buildings.

New Jersey represents one of the largest Life Sciences markets in the country, ranking 6th overall for market demand while Boston leads the nation as #1.  Big Pharma and many of the world’s top universities make our state one of the most sought after for venture capital and premier pharmaceutical companies.  Biomanufacturing has been a dominate driver of activity.

New Jersey has approximately 20.5 Million sf of existing Lab and R&D space.  Net lease rents for lab space in NJ grew 10-15% in the past year.  In Philadelphia, rents soared nearly 40%.  While there is virtually no new construction underway in NJ’s Suburban markets, conversion of older Office to Lab space is taking place.

Quality Lab space is leasing quickly as strong demand continues, leaving a serious lack of existing Life Sciences space on the market today.    This means higher rent and meager or no concessions.  Be prepared for multiple tenants vying for the same space.

We can help you make the most of your leverage to find the Lab space you need.  Know what to expect and how to reach your goals notwithstanding these significant challenges.

Call us for a situation and strategy consultation or for a list of available lab space that meets your needs.