Life Sciences

The Life Sciences Industry - New Jersey Laboratory And R&D/Manufacturing Trends | Life Sciences | Franzwa Real Estate Advisors LLC

The Life Sciences Industry - New Jersey Laboratory And R&D/Manufacturing Trends

The past 12 months experienced a true upsurge in the sheer volume of biotechnology and pharmaceutical start-ups with Management coming out of NJ companies (most notably Big Pharma) that have merged, downsized or have chosen to leave the State entirely. Typically start-up firms look for small to medium-size blocks of space.

The need for quality, pre-existing laboratory/R&D/manufacturing space is strong but hard to come by. Most often older available spaces remain on the market for lengthy periods of time before being put back to shell condition. Easy access to CROs/CMOs allow these Bio/Pharma companies to delay leasing or building out their facilities until they absolutely have to.

Hiring an experienced and knowledgeable broker as your advocate who understands the buildings/markets/Landlords and construction issues will help you navigate through the details cost effectively and efficiently. PLEASE CALL US FOR A CONSULTATION TO DISCUSS YOUR UNIQUE LIFE SCIENCES FACILITIES REQUIREMENTS.

Big Pharma often contains their laboratory/manufacturing facilities “within their own fenceline”. However, leased or owned facilities outside their corporate fenceline are still often large blocks of space. We are seeing Big Pharma shedding blocks of space (in excess of 50,000sf and often greater than 100,000sf) which is similar to the large single tenant office building scenario. They share the same problems: an inability to cost effectively multi-tenant (or retro-fit) the space to accommodate the needs of smaller users.

The typical lab user in the market today is between 5,000 – 25,000sf. Additionally, there remains an ever present need for incubator space in the 1,000sf – 3,000sf range. This Tenant market is hard pressed to find space available for them.

Here is a quote from one of the largest Laboratory/R&D Landlords in the tri-state area and whose opinion is respected in the Industry: