Trenton, NJ - According to Carly Helfand, "Pharma has long boosted commercial real estate in New Jersey, with some of the world's biggest drugmakers calling the state home. And that's not changing anytime soon, a new report says--despite layoffs and consolidation moves. While the state has seen a "modest decline" in the demand for R&D and lab space, pharma's increased office requirements are balancing it out, Cushman & Wakefield noted in its New Jersey Pharma/Life Sciences Market Report." That's not necessarily a surprise for a state that counts companies including Johnson & Johnson ($JNJ), Merck ($MRK), Novartis ($NVS), Bristol-Myers Squibb ($BMY), Sanofi ($SNY) and Bayer as corporate citizens. That group helped push New Jersey's life science worker tally to more than 115,000 in 2013, or 3.6% of the state's total--compared with 2.0% nationwide, Cushman & Wakefield notes.Of course, there have been some fluctuations as of late, with larger companies enacting cost cuts to offset the patent cliff. Roche ($RHHBY) recently ditched its Nutley campus--opting instead to cross the river into New York--while Novartis handed back more than 365,000 square feet of leased office space in Florham Park. Others have relocated R&D to hot markets like Boston and San Francisco "due to their proximity to a higher concentration of universities and centers of excellence," Cushman & Wakefield's Jason Price pointed out in a statement.But that's to be expected, Price stressed. "We will see contraction and growth as companies in this fluid industry merge, expand and consolidate," he said. "… And while lab/R&D may continue to be less of a driving factor in the state's real estate market, office needs will continue to boost both the local economy and real estate demand for years to come."
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