Life science companies have been active in seeking Class A office space, research and development/laboratory and manufacturing facilities until mid-2022 – this is according to a new report from JLL released on Monday.
The latest figures show that more than a third of leases signed in New Jersey in the first half of the year were for life sciences companies, the highest proportion among the various industries. Cell therapy and biomanufacturing tenants remain in expansion mode, while growing biotech companies are tapping into the pool of skilled employees available following consolidations among big pharma players.
Looking ahead, JLL’s report finds that accelerating demand from life science companies seeking modern, amenity-rich workspaces will drive the conversion of outdated office buildings with supportive infrastructure. to laboratories.
Several notable transactions through mid-2022 are significant. The largest transaction in the state involved PTC Therapeutics moving its headquarters from South Plainfield and leasing 360,000 square feet at 400 and 500 Warren Corporate Center Drive in Warren. Both buildings will house PTC Therapeutics’ offices, collaboration and conference spaces, and research labs.
Additionally, in vitro diagnostic test maker Access Bio has leased 152,740 square feet at 7 Fitzgerald Ave. in Monroe Township and South San Francisco, California, Cellares also leased a 118,210 square foot building at 95 Corporate Drive in Bridgewater for its cell therapy manufacturing. operations, while Gilead Sciences took 96,300 square feet at Latitude West in Parsippany for its new East Coast hub.
While life science company restructurings and relocations freed up more than 445,000 square feet of sublease space in the office market in the first half of 2021, less than 150,000 square feet were put on the market during the same period one year later. The largest block added in 2022 was 94,500 square feet of Teva Pharmaceuticals at 400 Interpace Parkway – Building D in Parsippany, while Kyowa Kirin began marketing 27,690 square feet in sublease at 135 Route 202/206 in Bedminster . Additionally, Sanofi has removed 233,250 square feet previously available for sublease at 55 Corporate Drive – Building A in Bridgewater. Approximately 436,750 square feet continued to be marketed in Buildings B and C, representing the largest sublease availability in the Route 78 submarket.
The demand for modern laboratory space is driving new construction and redevelopment projects in the Garden State. After acquiring a 42-acre site on the Princeton West Innovation Campus in Hopewell last November, BeiGene broke ground on the first phase of a 400,000 square foot pharmaceutical and biologics manufacturing facility in April 2022. more, Onyx
Equities announced two potential redevelopment plans for Celgene’s former campus at 86-90 Morris Ave. at Summit, which was purchased from Bristol-Myers Squibb. Celgene was acquired by Bristol-Myers Squibb in 2019. Now branded Summit East, two high-end office buildings are marketed in the complex, with concepts calling for either razing new
other buildings to maximize green recreational space, or redevelop the buildings into a single 190,000 square foot custom office building.