Leasing From Life Science Firms More Than Doubled In 2020
A new CBRE report found that the life sciences sector more than doubled its leasing in New York City between 2019 and 2020, marking its highest level in almost a decade.
According to the report, life sciences companies took up 155,925 square feet around New York, most of which was in Manhattan, marking the largest amount since 2011. This is compared to the 56% dip that overall office leasing saw last year, indicating that the industry is pandemic-proof.
“It wasn’t one big company taking that space,” said Steve Purpura, head of CBRE’s life sciences division. “It was newer companies taking that space, and those companies grow quickly.”
At the beginning of 2020, there were 42 life sciences tenants. That number grew to 59 by the end of the year.
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With the pandemic growing the need for therapeutics and vaccines, the industry managed to have a great year compared to other industries, such as hospitality and retail.
Funding from VC firms totaled $907 million in New York City last year, which is its highest annual amount ever according to the report.
While the life sciences market was slowly growing pre-pandemic, it was being held back by a lack of lab space in New York City.
Now, the amount of space in the city for labs stood at 1.68 million square feet by the end of last year, with CBRE predicting that number to grow to 4.21 million square feet by 2025.
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