New York Municipality has unchangingly attracted talent and a hub for progress. And yet, while New York graduates one of the highest numbers of STEM talent each year, the city ranks only sixth in life sciences square footage—behind the Bay Area, Boston and the Research Triangle in the Raleigh/Durham zone of North Carolina, among other metro areas.
Now, New York has taken notice. Mayor de Blasio started a billion dollar investment into the industry in hopes of bringing increasingly companies to the five boroughs as part of LifeSci NYC, launched to build up New York Municipality as a leader in life sciences. Recent office minutiae and leasing worriedness momentum suggests New York is poised to rise up the rankings—and the Life Sciences segment diversification is waffly the dynamics of the city’s commercial market.
Major Growth Numbers for Life Sciences
Nationally, the life sciences industry bucked lagging employment trends, growing 1.4% as overall employment dropped 5.1% from 2019 to 2020. Venture wanted funding into the industry moreover set a new upper of $10 billion in Q1 2021, doubling the investment in the previous year’s quarter. Additionally, there’s been a dramatic increase in demand for life science and lab space in New York in the first quarter of this year. Plane during the pandemic, NYC saw over $900 million in venture wanted investment in the industry, the second-highest total ever, withal with yearly increases in rent and leasing activity. In its entirety, employment in the industry has grown 67 percent since 2001.
New York City’s Numbers Suggest Strong Growth Ahead
In wing to stuff a leader in STEM graduates, New York Municipality is moreover a leader in bioscience professionals but only seventh in misogynist or under-construction spaces for this kind of work. New York Municipality is still overdue a number of other cities in terms of investment and space for the life sciences industry. Per the Times, only 2 million square feet of Manhattan is used for this sort of research, while in Boston, there is 30 million square feet demarcated for this purpose. Further, though over 30 percent of buildings in the municipality are misogynist to be used or converted into lab space, less than 3 percent are functionally ready to be used in this way.
Life Sciences Location Needs Create New Markets
Life Sciences companies demand proximity to universities, colleges, and hospitals, therefore, location is key. Considering of this, the industry is finding that these platonic environments for life sciences tenants are reshaping the Midtown- and Financial District-centric office ecosystem of New York. While some labs in the life sciences industry have set up shop on the far edges of Midtown, such as the Hudson Research Center near Hell’s Kitchen, Cure from Deerfield Management in the Flatiron District and the Alexandria Center in Kips Bay, the demand for life sciences space is drawing new sustentation to areas of the city. Long Island Municipality is home to Innolabs, under minutiae by King Street, while West Harlem is focal point of the Janus Property Company, which has been delivering life sciences spaces wideness multiple buildings at the Manhattanville Factory District, a master-planned commercial development.
With so much minutiae underway or once finished, the life sciences market is set to protract its rapid growth post-pandemic. Purpose-build spaces for life sciences buildings are both requisite and a major investment for owners. From powerful replacement generators and air ducts to waste removal capabilities and climate control, labs require a unconfined deal of foresight and planning from owners and developers. This requisite adds to the trend defining New York’s commercial office market in 2021 and the flight to quality as top tenants squint for spaces in trophy-class buildings that have seamless digital infrastructure, offer state-of-the-art technology and turnkey spaces and present co-branding opportunities for sustainability and design.
West Harlem’s Expanding Innovation Ecosystem
West Harlem presents a fascinating specimen study considering it is winning a large share of the life sciences leases. Recent tenant Hemogenyx is one such tenant. According to a statement from their CEO and founder Dr. Vladislav Sandler, “I personally toured every life sciences option in the New York Municipality zone and the nomination for our lab’s unfurled growth was clear. With several current and future vivarium options, the opportunity to interreact with Columbia University and Municipality College, the unrenowned location for my staff that come from several locations, and Janus’s transferral to both the life sciences industry and our visitor in particular, the Mink Towers represents a perfect combination that could not be matched.”
“The innovation corridor in West Harlem from Mt. Sinai’s Morningside campus to Columbia University’s historic campus and the Manhattanville expansion to Municipality College and the New York Structural Biology Center, to New York Presbyterian and Columbia University Medical Center, is just unmatched in New York City,” said Scott Metzner, Principal, Janus Property Company. Metzner and fellow Janus principal Jerry Salama have created one of New York’s largest life sciences/innovation districts.
“The combination of West Harlem’s location matched with the quality of construction and economic benefits are unique,” says Metzner. “In wing to uncontrived wangle to young STEM talent at Columbia and CCNY, our West Harlem location is not only the most user-friendly life sciences neighborhood for New Yorkers and those coming from New Jersey, Upstate or Connecticut, but it’s moreover a wonderful and, by New York standards, affordable place for people to live as well as work, with thriving retail and culture.”
In wing to Hemogenyx, Janus has once landed numerous lab, medical and related tenants including Harlem Biospace incubator, Quentis Therapeutics, Volastra Therapeutics, Renal Research Institute, Quicksilver Therapeutics, Hypothekids, BioBus and a New York State facility. Janus has recently completed the Taystee Lab Building, a 350,000-rentable square foot, new construction, LEED-certified life-sciences towers and the 200,000-rentable square foot Malt House. (The buildings’ unique names reflect their previous lives as a brewery and a confectionery. All of the sites were largely vacant or x-rated and Janus has worked extensively with the community, engineers and landscape architects to preserve as much of the buildings as possible and integrate them into an open, ungated urban campus)
“Importantly, West Harlem boasts a world famous, robust arts, cultural and nonprofit scene that exists in concert with our STEM tenants,” says Salama. “The Studio Museum is here, as are the Harlem Stage, the Apollo Theater, SoHarlem Creative, Lenfest Center for the Arts, Wallach Art Gallery, and soon, the Urban Civil Rights Museum. There is a tremendous sense of excitement with all of the growth that’s been occurring, plane with the pandemic. It’s all coming together at the same time!”
New York is rapidly expanding its life sciences industry, as noted, and though the market has not reached the upper bar set by Boston, this year represents a vital benchmark in the progress the market has made recently. With a combination of important factors, namely misogynist talent, industry expansion and openness to advancements, and lab space, the market should remain robust and resilient moving forward. Now, increasingly than ever, companies will be looking for prime, quality space and energy- and eco-efficient options tween an zippy life sciences landscape.