Life Sciences Outlook
Long Island | 2015
Long Island
The Long Island life sciences landscape will continue to grow
as firms emerge from Cold Spring Harbor Laboratory in Nassau,
as well as Stony Brook University and Brookhaven National Lab
in Suffolk.
Accelerate Long Island, an economic development initiative
launched by the Long Island Association and the Broadhollow
Bioscience Foundation, is actively seeking space across Long
Island for growing biotech firms, cementing Long Island as a
hub for small and mid-sized, growing firms.
Major lab supply:
Clusters of established lab stock with longtime industry presence
Emerging lab supply:
Areas with limited lab stock today that
are poised for growth
Life Sciences manufacturing supply:
Clusters of manufacturing space devoted
to pharmaceutical, biological or medical
device & instrument manufacturing
Nassau County overview
Nassau County is well positioned for future life sciences growth, given its proximity to New York City facilities. New laboratory partnerships continue to
develop at the rapidly expanding North Shore-LIJ Health System, which includes the Feinstein Institute for Medical Research. Nassau County is the
setting for Cold Spring Harbor Laboratory, a 125 year-old biomedical not-for-profit laboratory, and home to lab-based companies such as Mirimus and
Certerra. The Nassau County life sciences market is mainly comprised of owner-occupied laboratory facilities.
Suffolk County overview
The life sciences industry in Suffolk County is dominated by the federal government and Stony Brook University. Suffolk County is home to
Brookhaven National Laboratory, a 4.0 million square foot multipurpose research lab facility funded by the U.S. Department of Energy, founded in
1947. The National Institute of Health has awarded Stony Brook University’s Center for Biotechnology a three-year $3.0 million grant to create the
Long Island Bioscience Hub along with Cold Spring Harbor and Brookhaven Lab. Codagenix, Traverse Biosciences and Marrowsource Therapeutics
received National Institute of Health funding in 2014 and are supported by the Stony Brook Long Island High Technology Incubator. The majority of life
sciences establishments occupy owned facilities in a campus setting. A key trend to watch for is new pharmaceutical developments: three
pharmaceutical companies are constructing build-to-suit buildings totaling 270,000 square feet in Islip.
JLL | Long Island | Life Science Outlook | 2015
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Cluster score:
Economic scorecard
29,405
% life sciences to private
employment
2.8%
Year-overyear growth
-1.1%
535
0.5%
3.1%
Workforce
Total life sciences
Employment
Establishments
Funding
48.2
Total life sciences
% to total U.S.
VC funding*
$719.5M
5.1%
NIH funding
$157.5M
0.7%
Innovation
Total life sciences
% to all patent classes
1,713
21.7%
Patents*
The number of
pharmaceutical and medicine
manufacturing
establishments in Suffolk
increased over 25.0 percent
since 2004.
The NIH awarded $90.6 million
to organizations in Suffolk
and $40.8 million to
organizations in Nassau
County in 2014.
*Includes NYC totals
Long Island biotech jobs have
grown approximately 60.0
percent since 1960, according
to the Long Island Index.
Pharmaceutical and medicine
manufacturing employment
lead life sciences employment
growth, having increased
over 50.0 percent since 2004
in Suffolk. In Nassau,
employment in medical and
diagnostic laboratories
increased over 40.0 percent
since 2004.
Life sciences employment composition
Pharma & medicine manufacturing
13.0%
28.0%
Life sciences
employment
29,405
6.0%
36.0%
17.0%
non-lab
using
Electromedical instrument manufacturing
Medical equipment & supplies manufacturing
Testing laboratories
lab
using
Research & development
Medical & diagnostic laboratories
Life sciences patents by classification
2.8%
Life sciences
patents
1,713
Medical equipment & instruments
37.0%
Pharmaceuticals & biotechnology
60.0%
Crop science
Life sciences patents for
drug, bio-affecting and body
treating compositions
increased over 20.0 percent
since 2000 in the metro area.
Stony Brook University
faculty are responsible for
numerous patents. Stony
Brook received 157 rewards
from the NIH, worth $48.1
million, in 2014. Further,
Suffolk County is the state’s
largest agricultural county by
crop value.
JLL | Long Island | Life Science Outlook | Spring 2015
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Nassau County
Nassau County
Proximity to NYC, 16.5 percent
vacancy and low rent, positions
market for growth
•
•
•
•
•
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In April 2015, Cold Spring Harbor Laboratory and North Shore-LIJ
Health System formed a cancer research partnership in Lake
Success, Western Nassau. North Shore-LIJ has invested more than
$175 million to expand cancer treatment centers throughout Long
Island. Additionally, Cold Spring Harbor Laboratory received $35
million in funding from the National Institute of Health in 2014.
The Feinstein Institute for Medical Research is part of the North
Shore-LIJ Health System and is headquartered in Manhasset,
Western Nassau. The institute received $33.9 million in funding from
the National Institute of Health in 2014 and specializes in
autoimmune diseases, neurodegenerative diseases and cancer.
Though the vacancy rate slightly decreased to 16.5 percent, there is
available quality lab space in Nassau, including 24,000 square feet at
177 Cantiague Rock Road in Westbury.
Port Washington-based Aceto Corporation, a manufacturer of drugs
and chemicals, is rapidly expanding. Aceto recently purchased three
drugs from Par Pharmaceuticals for $8.2 million.
Angion Biomedica, a clinical stage biopharmaceutical company
established in 1998, leased 40,000 square feet at 51 Charles
Lindbergh Boulevard in Uniondale in 2011.
In Eastern Nassau, two renewals were signed. Shore Pharmaceutical
Providers signed a renewal for 40,000 square feet at 55 West Ames
in Plainview. Bioreclamation, a provider of biological products to life
sciences and pharmaceutical companies, signed a renewal at 123
Frost Street in Westbury.
Facilities scorecard
Nassau County
Major lab
Supply
Rentable lab stock
(% of total stock)
424,429 s.f.
77.0%
Direct vacancy
(Change year-over-year)
16.5%
(-1.0)%
# of large blocks over 100,000 s.f.
0
Under construction (s.f.)
0
Demand
# of requirements
Total s.f. requirements
1
80,000 s.f.
Pricing
Average asking rent (NNN)
(Change year-over-year)
$15.33 p.s.f.
(1.0)%
ANGION BIOMEDICA CORP.
51 Charles Lindbergh Boulevard,
Uniondale
40,000 s.f.
Term: 15 years
SHORE PHARMACEUTICAL
PROVIDERS
55 West Ames, Plainview
40,000 s.f.
Term: 10 years
Renewal
177 CANTIAGUE ROCK ROAD
Westbury
24,100 s.f.
Class A
Direct options
BIORECLAMATION INC.
123 Frost Street, Westbury
16,000 s.f.
Term: 7 years
Renewal and Expansion
Leasing
Under construction
Sales
Large blocks of space
Activity key:
JLL | Long Island | Life Science Outlook | 2015
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Suffolk County
Suffolk County
Build-to-suits drive new
construction activity
•
•
•
•
•
•
•
•
•
In Suffolk County, space options increased over the last year,
comprised of lab space formerly occupied by OSI Pharmaceuticals.
Hence, the Suffolk County vacancy rate increased 4.6 percent to
23.7 percent year-over-year.
OSI Pharmaceuticals canceled the company’s 62,000-square-foot
lease at Farmingdale State College’s Broad Hollow Bioscience Park
in 2014, leaving 45,000 square feet of lab space available. The park
is a nonprofit partnership between Farmingdale State and Cold
Spring Harbor Lab.
There are two active Suffolk County requirements totaling 80,000
square feet. The majority of tenants require 10,000 to 40,000
square feet.
The largest transaction of 2014 was Steel Equities’ purchase of
Forest Laboratories’ headquarters at 500 Commack Road for $25
million, due to the Forest consolidation. Actavis PLC purchased
Forest Labs for $25 billion in 2014 and Forest announced it would
close six of its seven facilities in Suffolk.
Pharmaceutical manufacturer A&Z is expanding in Suffolk and
purchased a 118,000-square-foot building at 350 Wireless Boulevard
in Hauppauge.
Two Hauppauge-based pharmaceutical companies are expanding
operations onto an 18-acre parcel in Central Islip. InvaGen is
constructing a 125,000-square-foot facility and Alpha Med Bottles is
constructing a 70,000-square-foot facility on Carlton Avenue.
Centereach-based Spirit Pharmaceuticals LLC will construct a
75,000-square-foot building in Islip. The $15 million expansion
project will consolidate the Centereach office and the 55,000 square
feet it occupies at 2004 Orville Drive North, Ronkonkoma. The
proposed factory will be in the town's foreign trade zone.
Contract Pharmacal Corp. in Hauppauge, a manufacturer of over-thecounter drugs, vitamins and dietary supplements, plans to invest $4.0
million in its seven Hauppauge plants.
Stony Brook University R & D Park is a 246-acre parcel of open land
available for development. The space will be built in response to
demand from Start-Up NY designated companies. Stony Brook
University has several business incubators with space available for
Start-Up NY Companies. Start-up NY provides tax incentives for
businesses to expand through affiliations with universities.
Facilities scorecard
Suffolk County
Major lab
Supply
Rentable lab stock
(% of total stock)
381,376 s.f.
10.5%
Direct vacancy
(Change year-over-year)
23.7%
(4.6)%
# of large blocks over 100,000 s.f.
Under construction (s.f.)
0
270,000 s.f.
Demand
# of requirements
Total s.f. requirements
2
80,000 s.f.
Pricing
Average asking rent (NNN)
(Change year-over-year)
$16.90 p.s.f.
(1.0)%
A&Z PHARMACEUTICALS
350 Wireless Boulevard
Hauppauge
118,042 s.f.
Class C
$12.6M / $107 p.s.f.
INVAGEN PHARMACEUTICALS
275 Carlton Avenue, Islip
125,000 s.f.
Expected delivery: 2016
BROADHOLLOW BIOSCIENCE
PARK
Farmingdale
45,000 s.f.
Class A
Direct lease
SPIRIT PHARMACEUTICALS
Islip
75,000 s.f.
Expected delivery: 2016
Leasing
Under construction
Sales
Large blocks of space
Activity key:
JLL | Long Island | Life Science Outlook | 2015
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For more information, please contact:
Stephen Jenco
Vice President, Suburban Tri-State Research
+1 (201) 528-4454
steve.jenco@am.jll.com
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