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News release

STAMFORD, CT

JLL Sees Life Sciences Sector Among Westchester County’s Only Growth Stories

About 500,000 SF under renovation, construction at year-end 2013; millions of additional square feet planned, proposed


STAMFORD, CT, May 1, 2014 — According to JLL’s recently released New Jersey/New York City/Westchester County Life Sciences Outlook report, the life sciences sector in Westchester County, N.Y., was one of the area’s only growth stories throughout the recession and the subsequent, and ongoing, recovery.

Though a significant player in Westchester in the past, the life sciences industry did not become a major economic force in the county until about five years ago when Regeneron Pharmaceuticals, Inc. and OSI Pharmaceuticals Inc. made major occupancy and investment commitments. Regeneron expanded its presence in Westchester County by taking an additional 220,000 square feet at The Landmark at Eastview in Mount Pleasant. Out-of-market tenant OSI purchased a 43-acre property in Ardsley with plans to reposition the site as its headquarter campus.

OSI’s planned relocation never materialized due to its acquisition by Astellas Pharma US Inc. The firm’s initial commitment spurred BioMed Realty Trust Inc., another Westchester County life sciences player, to make an opportunistic play. In 2011, BioMed bought the Ardsley Park site from OSI. Acorda Therapeutics Inc. relocated and consolidated its operations there from within the county in 2012. The life sciences arena has maintained significant momentum in the market ever since.

“Westchester County’s life sciences sector benefits from a disproportionate amount of public and private investment,” said Chris O’Callaghan, managing director and Westchester County market lead for JLL. “There are few other investment targets that offer as much long-term positive impact.”

The county’s laboratory- and life sciences-suitable stock totaled slightly more than 3.0 million square feet of space at year-end 2013. The overall vacancy rate was 14.6 percent, down slightly from one year earlier, and substantially lower than the 20.2 percent overall vacancy rate posted by Westchester County’s office market. Overall average rental rates for life sciences space were on the upswing, increasing 1.8 percent in the past year to $18.50 per square foot on a triple net basis.

The life sciences sector is also one of the few commercial real estate segments actively growing in the market, with approximately 400,000 square feet of space under construction or renovation. In addition, a large pipeline project is under way in Mount Pleasant to boost the presence of life sciences companies in the county. This North 60 project will encompass 60 acres of biotech development that include New York Medical College’s $12.6 million biotechnology incubator and Fareri Associates’ $500 million, 2.0 million-square-foot biotech and medical park.

Westchester County officials recently conducted a study of transit-oriented development that proposed life sciences-based developments in Southern Westchester. The projects would include 1.4 million square feet of research and development space while repositioning more than 1.0 million square feet of functionally obsolete office space, helping stabilize the office market and cultivating the market as a life science hub.

JLL is a leader in the New York tri-state commercial real estate market, with more than 1,600 of the most recognized industry experts offering brokerage, capital markets, property/facilities management, consulting, and project and development services. In 2013, the New York tri-state team completed approximately 25.9 million square feet in lease transactions, arranged capital markets transactions valued at $2.1 billion, managed projects valued at nearly $7.0 billion, and oversaw a property and facilities management portfolio of 95.3 million square feet and an agency leasing portfolio of 67.0 million square feet.

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. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. For further information, visit www.jll.com.