Increased investment and employment in the life sciences sector has driven life sciences-related real estate to new heights, according to Cushman & Wakefield’s new Life Sciences Update.
And, in New Jersey, many life sciences companies continued to call the Garden State their home in 2021, a trend that has not wavered for quite some time, as is evident by the growth in the sector, which has directly translated into increased demand for lab space. As a cheaper alternative to some high-priced lab markets, the Garden State has recorded a rise in lab and research & development demand over recent years.
The highly educated talent pool continues to motivate companies to expand within the state, along with an innovative ecosystem with top-rated research universities and a persistent pipeline of biotech startups.
With the market tightening amid healthy activity, the average net asking rental rate has swelled by 12.2% since 2020, to an all-time high of $33.61 per square foot.
Life sciences employment has continued to fare better than the U.S. job market, with year-over-year growth up 7.9% and 11.4% in 2020 and 2021, respectively. Since 2001, New Jersey has experienced a 141% increase in life sciences employment, with the employment and talent pool reaching 43,700 current and potential employees.
Investors remain extremely interested in purchasing life sciences facilities throughout the Garden State, especially fully leased assets. Institutional buyers such as Thor Equities, Harrison Street and Lincoln Equities Group have all entered the life sciences marketplace in recent years.