NYC's research lab construction market is heating up
The lack of laboratory space supporting life-sciences research in New York City could present an opportunity for contractors looking to fill the gap, according to Bisnow, citing research from Transwestern.
New York City's 1.7 million square feet of lab space is fully occupied, with little new space in the works. Only two developments are underway or planned for the city: the Alexandria Center for Life Science campus and the Hudson Research Center.
New York city and state governments have pushed funding initiatives for such projects. In December 2016, New York City officials updated zoning rules to allow lab space to be built in previously off-limits commercial districts.
With a high concentration of life-science education and employment opportunities and strong demand for related space, New York City's construction industry could be looking at its next big business opportunity. In addition to the Alexandria and Hudson Research centers, another such facility is poised to help meet the city's need for more labs.
Construction is expected to start next year on the New York Life Sciences and Biotechnology Center. The project would add 1.35 million square feet to New York's life sciences lab footprint, putting it among the largest of such complexes in Manhattan, according to Xconomy New York.
That development, along with another biotech incubator, [email protected], is helping New York compete with the established life-science research hubs of Boston and San Francisco. And those markets aren't slowing down. Earlier this year, Massachusetts Gov. Charlie Baker announced plans to funnel $500 million over the next five years to support public infrastructure, research and development, and workforce training in the life sciences field. As part of that proposal, Baker said he would support public-private partnerships and target funding to develop the state as a top contender in the sector.
The addition of more life-science research space to Manhattan would also be welcome by the city's booming healthcare industry. The sector adds $40 billion to the city's gross product annually, with hospital property holding $14.4 billion in market value, according to the New York Building Congress.
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