New Jersey’s life sciences arena was active in 2024, as a broad spectrum of companies pursued office, R&D/lab, and bio manufacturing opportunities. In fact, a new report from JLL shows that nearly 30% of leases signed in the state during the past year involved pharmaceutical/life sciences companies, which was the largest volume of activity among the various business sectors.
This was also the third consecutive year in which life sciences was the most active segment in New Jersey.
Flight-to-quality migration has been fueling space requirements in the life sciences market, as tenants shed outdated workspaces and relocate into turnkey Class A facilities offering premium amenities and a robust infrastructure.
This trend was evident during Q4 as several companies pursued opportunities at the former Merck & Co. campus in Kenilworth, which has been rebranded as the Northeast Sciences and Technology Center (NEST). Revlon signed a 62,000-square-foot lease at the campus, where it will centralize its research labs, pilot manufacturing and office operations. The cosmetics giant is moving its R&D hub from Edison.
NJIT will also occupy 25,000 square feet at NEST for a new research hub. In addition, AI cloud computing company CoreWeave leased a 280,000-suare-foot building on the campus, where it will spend $1.2 billion to create a state-of-the-art data center.
The Princeton submarket was also active in late 2024, as BioCentriq leased nearly 56,850 square feet at 201 College Rd E for a new corporate headquarters and cell manufacturing facility. On the sales front, Doehler North America purchased 1 Research Way in Princeton from BioMed Realty for $19 million. The 50,240-square foot facility consists of office and fully built-out lab space.
New Jersey’s diverse, educated workforce, existing lab infrastructure and thriving ecosystem of industry peers will remain among the factors keeping the state on the radar screen for growing life science companies in 2025. Occupiers will prioritize high-quality spaces in desirable locations to attract and retain top talent, while enhancing productivity. Companies will focus on assets offering the best value and that are in alignment with their long-term corporate goals.
