March 2025 Life Sciences Update

New Jersey

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024)

Rent vs. Vacancy Comparison

Fast Lab Stats

• Although the life sciences sector showed signs of cooling early in 2024, the market still recorded several notable transactions. Three leases exceeding 100,000 sf were signed, compared to none the previous year. RK Pharma and US Pharma took advantage of newly built and vacant warehouse space to establish new locations, while GenScript ProBio made headlines in the second half of 2024 with its commitment to 103,091 sf of lab space at the Princeton West Innovation Campus. • Leasing activity rebounded in the second half of 2024 following a slow start, which was partially influenced by reduced VC funding earlier in the year. However, investment trends improved in the latter half, with VC funding reaching $122 million, a 38% increase compared to the first six months. This increase in capital was followed by a stronger leasing performance, bringing total annual activity to 934,145 sf, with nearly all (907,253 sf) occurring during the second half. • Key transactions included Revlon’s 62,000 -sf relocation to the former Merck campus at 15 Nest Drive and New Jersey Institute of Technology’s 25,000 -sf lease in the same complex. BioCentriq also committed to a 56,845-sf headquarters lease at 201 College Road East, supported by a $12 million capital investment for facility upgrades and equipment modernization. • Jersey City's 95 Greene St. has exhibited strong demand since ownership repositioned the property for life sciences use. RegenLab USA, a manufacturer of regenerative cell therapy devices, is relocating from Brooklyn and will occupy 15,792 sf. The International AIDS Vaccine Initiative also moved from Brooklyn to the property in late 2023, further underscoring the building’s appeal to life sciences tenants.

$ Raised (MM)

$39

14%

Company

Deal Type

Completed VC Round

19.2 MSF Market Square Footage $38.15 $ Per SF 8.3% Vacancy 63.2K Total Life Sciences Employment 18.2% Life Sciences Employment 10-Year Growth Rate

$37

12%

Navigator Medicines Early Stage VC Aug 2024 1st Round

$100.0

Claris Bio

Later Stage VC Jan 2024 1st Round

$57.0

$35

10%

Vacancy Rate

Evergreen Theragnostics

Later Stage VC Mar 2024 4th Round

$26.0

$33

8%

Chromocell Therapeutics (ASE: CHRO)

$31

6%

IPO

Feb 2024

$6.6

$29

4%

LinusBio

Early Stage VC `

3rd Round

$6.2

$27

2%

Average Asking Rent $/sf

Linnaeus Therapeutics

Later Stage VC Dec 2024 6th Round

$5.8

$25

0%

2015 2017 2019 2021

2023

Optimeos Life Sciences

Seed Round

Nov 2024 4th Round

$5.0

Asking Rents

Overall Vacancy

Sublease Vacancy

Cayaba Care

Early Stage VC Mar 2024 3rd Round

$4.4

Taxis Pharmaceuticals

Grant

May 2024

$2.7

Representative Investment Sale Transactions (2024)

Address

Type

$/psf

$ MM RBA SF

Date

Buyer

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Lab

$19.0

Oct. 2024

Doehler North America

1 Research Way

$375.64

50,581

Lab

$11.5

Nov. 2024

Accu Reference Medical Laboratory

198 Woodbridge Center Drive

$92.74

124,000

Company

Type

1,000 1,200 1,400 1,600 1,800 2,000

Bristol Myers Squibb

HQ, ResearchFacility, other

Representative Lease Transactions (2024)

Johnson & Johnson

HQ, ResearchFacility, other

Company

Address

Size (SF) New/Renewal

Type

Quarter Landlord

Merck

HQ, ResearchFacility, other

RK Pharma

148 Princeton Hightstown Road

406,669 New Lease

Direct

Q3 Black Creek Group

0 200 400 600 800

Bayer

HQ, ResearchFacility, other

Sanofi

RegionalOffice, ResearchFacility

US Pharma

2 King Arthur Court

163,610 New Lease

Direct

Q3 SL Industrial Partners

Novartis

RegionalOffice, ResearchFacility

Novo Nordisk RegionalOffice

GenScript ProBio

311 Pennington Rocky Hill Road

127,056 New Lease

Direct

Q3 Lincoln Equities Group

2020 2021

2022

2023 2024

Teva Pharmaceuticals

RegionalOffice, ResearchFacility

Onyx Equities / Machine Investment Group

Hires Unique Postings

Revlon

15 Nest Drive

62,000 New Lease

Direct

Q4

PTC Therapeutics

HQ, ResearchFacility

BioCentriq

201 College Road East

56,845 New Lease

Direct

Q4 National Business Parks

Top NIH-Funded Institutions (2020-2024)

Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions

Rutgers University

2013 4,690 2023 5,696 Up 21%

• • • • •

$418M RBHS-New Jersey Medical School $318M Rutgers, The State University of N.J. $266M Princeton University

The College of New Jersey

Seton Hall University Princeton University

NJIT

Research Contributors

John Obeid john.obeid@cushwake.com

Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook

Cushman & Wakefield

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