Life Science: Great Promise & Rapid Growth
New Jersey has historically been a life science hub, gaining the moniker of “Medicine Chest of the Nation.” The industry continues to play a major role in the state’s economy as many of the largest life science corporations are located in the Garden State. New Jersey is in an ideal location for many life science companies due to its close proximity to New York City and its central location in the heart of the nation’s Northeast Corridor, connecting Boston and Washington, D.C. via I-95. While currently home to 13 of the top 20 bio- pharma companies, the state has experienced a slight decline in the number of big-pharma companies since the recession due to both mergers and acquisitions and some firms migrating out of the state. However, since 2014, the number of life science operations has risen to over 3,280.
Many mid- and large-sized pharmaceutical firms occupy chunks of office space in Northern and Central New Jersey as either global headquarters or regional offices. Life science office leasing activity totaled over 1.7 msf in 2018. Major transactions were inked by Teva Pharmaceuticals, Integra Life Sciences, and Insmed, Inc. Additionally, Quest Diagnostics recently purchased a land site at ON3 and will build a 250,000 sf lab facility at the campus. Currently, the Northern and Central New Jersey lab inventory totals 15.2 msf, 64.3% of which lies in Morris and Somerset Counties and the Greater Princeton area. After lab vacancy peaked in 2014, vacancy declined by 790 basis points by the close of 2017. However, the rate has swelled in 2018 due to Bristol-Myers Squibb’s 1.15M sf R&D campus being vacated in Hopewell.
15.2 MSF MARKET SQUARE FOOTAGE AVERAGE RENT (PER SF) $18.26 117,300 TOTAL EMPLOYEES 13.6% VACANCY FAST LAB STATS
TOP TEN LIFE SCIENCE EMPLOYERS (BY REVENUE)
NEW JERSEY COMPANY TYPE Johnson & Johnson Pharmaceutical Pfizer Pharmaceutical
TOP THREE NIH-FUNDED INSTITUTIONS
RUTGERS UNIVERSITY $53M
PRINCETON UNIVERSITY $49M
RUTGERS BIOMEDICAL & HEALTH SCIENCES NEW JERSEY MEDICAL SCHOOL $47M
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