New York City is emerging as a leading destination for biotech startups and the larger life sciences industry. As illustrated in our New York research Snapshot chart this week, New York City now ranks second in life sciences funding from the National Institutes of Health (NIH), receiving $1.63 billion in 2016 (see chart below).
The Bureau of Labor Statistics estimates that more than 1,000 life sciences companies are located in the New York metropolitan area, with industry leaders like Pfizer, Eli Lilly and Roche being among them. Additionally, 60 percent of the world’s pharmaceutical industry is located in the New York metro region.
The life sciences industry’s rapid growth in New York City can be attributed to several key factors:
- LifeSci NYC is a 10-year, $500 million investment created to establish New York City as a global leader in life sciences research and innovation. Specific initiatives include allocating $100 million toward the creation of an applied life sciences campus and $50 million in capital to help create new work spaces for research with a high potential for commercialization and job growth.
- New York City Economic Development Corporation (NYCEDC) has partnered with venture capital firms like GE Ventures, Celgene Corporation and Eli Lilly to establish the New York Early-Stage Life Sciences Funding Initiative , which will deploy a minimum of $150 million to help launch 15 to 20 breakthrough life sciences ventures by 2020.
- The 728,000-square-foot Alexandria Center for Life Science is a state-of-the-art life science and biotechnology campus located in close proximity to innovators in technology, finance, and research and development, as well as top academic and medical institutions, to foster cross-institutional collaboration.
- New York City has the world’s largest concentration of academic institutions; its nine major academic medical centers include NYU, Columbia University, Albert Einstein College of Medicine, Icahn School of Medicine at Mount Sinai and Weill Cornell Medical College.
- The expanding life sciences cluster in NYC also offers close proximity to other nearby biotech enclaves like New Jersey, Long Island and Westchester County.
Hired in May of this year as a senior vice president in our Midtown office, John Cahill has spent his real estate career focusing on life sciences and biotechnology transactions. “There has been a very significant amount of momentum in New York City the last 12 to 24 months to support the life sciences industry,” said Cahill. “Now, clients and prospects have the ability to access the financial support – $1.15 billion combined – and resources of New York State Empire State Development and New York City Economic Development Corporation. This is all great news for the bioscience industry and New York City’s growing life sciences hub.”
For more, download JLL’s 2017 Life Sciences Outlook.