Life Sciences Outlook. New York City 2016

Transcription

1 Life Sciences Outlook City 2016

2 City is emerging as a leading destination for biotech startups and the larger life sciences industry. Investors have committed millions of dollars throughout the city and larger region to fuel industry growth in the life sciences and attract top talent. Major lab supply: Clusters of established lab stock with long-time industry presence Bronx Manhattan Queens 4 Emerging lab supply: Areas with limited lab stock today that are poised for growth 78 Staten Island Brooklyn Life Sciences manufacturing supply: Clusters of manufacturing space devoted to pharmaceutical, biological or medical device & instrument manufacturing City is an emerging destination for life sciences tenants, as the local economy continues to diversify and embrace new industries. According to the local Economic Development Corporation, the area is home to the largest concentration of medical centers, research foundations and academic institutions. The life sciences scene in City is also bolstered by its close proximity to other biotech enclaves in the larger metro area namely New Jersey, Long Island and Westchester County. JLL City Life Sciences Outlook

3 Economic scorecard % life sciences to private Year-overyear growth WORKFORCE Total life sciences employment Employment 13, % 0.4% Establishments 1, % 6.8% Cluster score: 34.7 City continues to be a leading destination for venture capital funding and investment by the National Institutes of Health (NIH). FUNDING Total life sciences % to total U.S. VC funding $437.2M 6.2% NIH funding $1,506.9M 13.10% SUPPLY Rentable lab supply % direct vacancy 2,783,094 s.f. 32.6% The NYC Early-Stage Life Sciences Funding Initiative, sponsored by a local publicprivate partnership, is expected to create 2,000 life sciences jobs over the next few years. Life sciences employment composition 36.36% 1.46% 4.59% 9.99% 0.98% non-lab using Pharma & Medicine MFG Electromedical Instrument MFG Life sciences 13,947 Medical Equipment & Supplies MFG Testing Laboratories R&D 46.62% lab using Medical & Diagnostic Laboratories Life sciences establishment composition 39.76% 2.23% 2.79% Life sciences establishments 1, % 4.38% Pharma & Medicine MFG Electromedical Instrument MFG Medical Equipment & Supplies MFG Testing Laboratories R&D City, home to a large cluster of prominent medical centers, research foundations and academic institutions, attracts global talent to its life sciences industry % Medical & Diagnostic Laboratories JLL City Life Sciences Outlook

4 City (Manhattan & Brooklyn) Major life sciences initiative underway in City With support from the City Economic Development Corporation (NYCEDC) and the local government, City is an emerging cluster for the growing life sciences industry. A number of factors allow the sector to thrive. As a global financial leader, the city s direct access to capital and its rich talent pool contribute to its status as an ideal destination. A diverse economic landscape and proximity to the booming tech sector have also created unique opportunities for innovation among established life sciences tenants and smaller startups. City is already home to recognized industry giants (like Roche, Pfizer and Eli Lilly), and the NYCEDC estimates that more than 100 other life sciences companies are located throughout Manhattan and Brooklyn. Additionally, boasts the world s largest cluster of renowned academic institutions, research foundations and medical centers. Facilities scorecard SUPPLY Rentable lab stock (% of total stock) Direct vacancy (Change year-over-year) NYC 2.8M s.f. 99.4% 32.6% (8.8) ppts # of large blocks over 50,000 s.f. 2 Under construction/ redevelopment (s.f.) 3.6M s.f. PRICING Average asking rent (gross) (Change year-over-year) $27.30 p.s.f. (19.7)% The NYCEDC has continued its efforts to foster growth in the life sciences throughout the city. It created the Early-Stage Life Sciences Funding Initiative through a public-private partnership with Eli Lilly, GE Ventures and Celgene, which is slated to inject $150 million into what the NYCEDC deems as breakthrough ventures to spur bioscience research and development as well as create an anticipated 2,000 jobs over the next few years. The Initiative also plans to add approximately 450,000 square feet of commercial bioscience research and lab space. Alexandria Real Estate Equities, developer of the Alexandria Center for Life Science, recently announced the opening of LaunchLabs at the property. LaunchLabs will serve as a 15,000-square-foot incubator that provides shared, affordable space for pharmaceutical and medical startups. Alexandria s venture division will also set up a seed fund of up to $25 million to support new firms. On Roosevelt Island, construction continues on Cornell s new 2.1- million-square-foot tech campus dedicated to the applied sciences. Phase I of the project is expected to deliver in Elsewhere in Brooklyn, renovation is underway at the 1 million-square-foot Building 77 in the Navy Yard. More than $140 million has been invested into the industrial building, which is slated for delivery in 2017, to transform it into a biotechnology and manufacturing hub. Nestle Skin Health New lease E 29th St. (Alexandria Life Center) Gramercy Park 31,000 square feet BioBAT Brooklyn Army Terminal Building A th St. South Brooklyn Waterfront 438,000 square feet Activity key: Leasing Sales Eli Lilly & Co. Expansion E 29th St. (Alexandria Life Center) Gramercy Park 30,000 square feet Former Pfizer Building 630 Flushing Ave. Flushing Ave. Corridor 438,676 square feet Under construction Large blocks of space JLL City Life Sciences Outlook

5 For more information, please contact: Tristan Ashby Research Director +1 (212) Tiffany Ramsay Senior Research Analyst +1 (212) About JLL JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit About JLL Research JLL s research team delivers intelligence, analysis and insight through market-leading reports and services that illuminate today s commercial real estate dynamics and identify tomorrow s challenges and opportunities. Our more than 400 global research professionals track and analyze economic and property trends and forecast future conditions in over 60 countries, producing unrivalled local and global perspectives. Our research and expertise, fueled by real-time information and innovative thinking around the world, creates a competitive advantage for our clients and drives successful strategies and optimal real estate decisions. This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without prior written consent of Jones Lang LaSalle IP, Inc. COPYRIGHT JONES LANG LASALLE IP, INC. 2016