Vornado, Related target life-sciences tenants for Farley Post Office redevelopment

Joint venture is looking to tap into high-growth sector

New York /
Apr.April 02, 2018 08:18 AM

Steve Roth and Stephen Ross with the Farley Post Office Building

Vornado Realty Trust and the Related Companies are targeting biotechnology and pharmaceutical tenants for their redevelopment of the Farley Post Office Building.

The joint venture hired a broker from Boston, which has a more mature life-sciences industry, to develop a marketing strategy to attract such tenants to the 900,000-square-foot office-and-retail project, the Wall Street Journal reported.

“New York is eight years into a 25-year process to grow a [life-sciences] cluster,” said Joel Marcus, founder and chief executive of Alexandria Real Estate Equities Inc., which developed a life-sciences campus on the East Side of Manhattan. “You don’t have the large cadre of entrepreneurs who have started a business, exited and started again.”

Life-sciences is pegged as the newest high-growth industry for the city, following the expansion of tech companies. Much like the Bloomberg administration courted tech companies, under mayor Bill de Blasio the city’s Economic Development Corp. put a request for proposals offering $100 million in city land and other benefits for developers to build a life-sciences hub.

NYU Langone Medical Center is working with Cambridge, Mass.-based BioLabs to create a 50,000-square-foot biotech co-working center in Hudson Square, and Taconic Investment Partners and Silverstein Properties are looking to attract companies to lab space at 619 West 54th Street.

But while New York has long had first-rate medical and research institutions, limited lab space has made it difficult to retain life-science startups.

The high cost of building upgrades and zoning requirements have left the city with just 2.8 million square feet of rentable lab space, compared to 16.2 million square feet in New Jersey and 26.8 million square feet in the greater Boston area, according to JLL.

CBRE vice chairman Steve Purpura said there are 4.8 life-science employees living in Manhattan for every life-science job in the borough.

“We discovered that there is more life-sciences labor that lives in Manhattan than works in Manhattan,” he said. “People in New York who have life-sciences degrees are working in other industries or commuting out to New Jersey.” [WSJ] – Rich Bockmann


Related Articles

arrow_forward_ios
Eric Gordon
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)
Related is the latest developer to target the Rockaways
Related is the latest developer to target the Rockaways
Mack Real Estate CEO Richard Mack and one of his new hotels at 51 Nassau Street. (Getty, ING)
Mack Real Estate takes over 7 distressed Manhattan hotels
Mack Real Estate takes over 7 distressed Manhattan hotels
1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)
CIM closes on $400M refi for 1440 Broadway
CIM closes on $400M refi for 1440 Broadway
Theaters in some cities are opening with restrictions. (Getty, Photo Illustration by Alison Bushor for The Real Deal)
Coming attraction: Movie theaters reopen in New York, San Fran
Coming attraction: Movie theaters reopen in New York, San Fran
Innovo Property Group's Andrew Chung with 23-30 Borden Avenue in Long Island City (Google Maps)
Innovo lands $155M construction loan for LIC warehouse
Innovo lands $155M construction loan for LIC warehouse
Restaurants and bars accounted for a majority of the gains in February (iStock)
Leisure, hospitality big winners in February job gains
Leisure, hospitality big winners in February job gains
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...