March 2025 Life Sciences Update

New York

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024)

Rent vs. Vacancy Comparison

Fast Lab Stats

• The life sciences industry has expanded its footprint in New York, with state and city incentives encouraging developers to build labs for medical research. In 2022, New York City and the state of New York announced a partnership to develop a $1.6 billion Science Park and Research Campus (SPARC) in Kip’s Bay to expand the city’s life sciences and healthcare sectors, with construction expected to begin in 2025 and completed in 2031. In 2023, both the city and state of New York pledged an additional $10 million, alongside $250 million from the Chan Zuckerberg Initiative, for a new biomedical research hub with a focus on early disease prevention, detection and treatment. • Investors and developers worldwide continue to grow their presence in New York, as it has one of the most educated and diverse talent pools in the nation, along with first-class academic and medical institutions, and premier VC ecosystems. • VC funding has slowed since 2021, but significant deals continue to transact. Total VC funding volume reached over $3.4 billion in 2024 for companies with presence in the New York metro area. Drug discovery was a key area of focus for nine of the 10 top-funded companies in 2024. • New York City has emerged as a viable life sciences market, with 3.9 msf of developed stock. One building delivered in the second quarter of 2024 at 2226 Third Ave., adding nearly 200,000 sf of space to the market. Over the next few years, life sciences supply will grow by almost 550,000 sf when the expected addition at 550 E. 29th St. is completed.

$ Raised (MM)

$105

45%

Company

Deal Type

Completed VC Round

3.9 MSF Market Square Footage $81.15 $ Per SF 42.0% Vacancy 88.2K Total Life Sciences Employment 11.3% Life Sciences Employment 10-Year Growth Rate

$95

40%

Formation Bio

Later Stage VC Jun 2024 5th Round $372.0

$85

35%

Metsera

Early Stage VC Aug 2024 1st Round $350.0

$75

30%

Vacancy Rate

Metsera

Early Stage VC Nov 2024 2nd Round $215.0

$65

25%

EvolutionaryScale

Seed Round

Jun 2024 2nd Round $142.0

$55

20%

LB Pharmaceuticals

Later Stage VC Jan 2024 5th Round $110.7

$45

15%

Ajax Therapeutics

Later Stage VC May 2024 3rd Round $95.0

$35

10%

Elion Therapeutics

Later Stage VC Jun 2024 2nd Round $81.0

$25 Average Asking Rent $/sf

5%

Helaina

Later Stage VC Sep 2024 4th Round $45.0

$15

0%

Verse Medical

Later Stage VC Apr 2024 2nd Round $42.0

2015 2017 2019 2021

2023

TailorMed (Enterprise Systems)

Asking Rents

Overall Vacancy

Sublease Vacancy

Later Stage VC Nov 2024 4th Round $40.0

Representative Lease Transactions (2024)

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Company

Address

Size (SF) New/Renewal

Type

Quarter Landlord

Company

Type

3,500

Chan Zuckerberg 615 West 131 tst Street

46,000 New Lease

Direct

Q3 Silverstein Properties

Pfizer

HQ

3,000

430 East 29 th Street

18,120 New Lease

Sublease

Alexandria Real Estate Equities

Firmenich

Q2

Bristol-Myers Squibb

HQ

2,500

Mount Sinai

619 West 54 th Street

15,094 New Lease

Direct

Q3 Alexandria Real Estate Equities

Royalty Pharma

HQ

30-02 48 th Avenue

7,302 New Lease

Sublease

Alexandria Real Estate Equities

2,000

Insprina

Q1

Erbitux

HQ

Radical AI

430 East 29 th Street

7,099 New Lease

Sublease

Q4 Alexandria Real Estate Equities

1,500

Eli Lilly

HQ

Nilo Therapeutics 430 East 29 th Street

6,000 New Lease

Direct

Alexandria Real Estate Equities

Q2

1,000

Intra-Cellular Therapies HQ

Osmo

5,000 New Lease

Sublease

Q3 Alexandria Real Estate Equities

450 East 29 th Street

500

Lexeo Therapeutics

HQ

Waypoint Bio

430 East 29 th Street

3,413 New Lease

Sublease

Q3 Alexandria Real Estate Equities

0

2020 2021

2022 2023 2024

Schodinger

HQ

Hires Unique Postings

Kallyope

HQ

Top NIH-Funded Institutions (2020-2024)

Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions

$3.0B Columbia University Health Sciences $2.4B New York University School of Medicine $2.3B Icahn School of Medicine at Mount Sinai

Columbia University New York University Fordham University

2013 9,682 2023 12,379 Up 28%

• • • • •

City College of New York New York Institute of Technology

Weill Cornell Medical College

•

Research Contributors

Reed Hatcher reed.hatcher@cushwake.com

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

Cushman & Wakefield

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