Commercial real estate owners may find themselves seeking new income streams after a retail and office space downturn. They may wish to turn their attention to the life sciences industry. New Jersey’s available rental properties have attracted companies in need of real estate for accommodating biotechnology centers and laboratories.
CNBC reports that the Garden State ranks in the top 10 largest real estate markets for tenants and buyers seeking life science facilities. Neighboring New York City and Philadelphia have also attracted the attention of biotech or related data centers.
Owners react to a growing demand in the commercial real estate market
As investors pour funds into biotech and pharmaceutical companies, the demand for research and lab space may continue to grow. Real estate investment trusts may also look to purchase vacant land or buildings in need of refurbishing. These investments may become a path to generating new and highly profitable revenue streams.
Mixed-use or multi-purpose work, shop and living units have become a development trend. Owners are restructuring recently vacated shopping-center real estate. Large office spaces may no longer serve modern workplace needs as companies shift toward remote operations. Subdivision may reflect a more realistic approach.
Sales and rental agreements may require significant changes
Real estate owners who have lost commercial tenants may need to overhaul the previously noted purpose of an unoccupied unit. To attract new buyers or tenants, such as life sciences companies, properties may require rezoning to modify their use and reflect upgraded accommodations. Rental agreements and real estate closing documents may require significant changes.
As noted by Life Science Leader magazine, biotech workplaces often require storage areas with temperature control and a safe way to dispose of hazardous materials. Property owners who refurbish their holdings to accommodate the testing and incubation needs of wet and dry labs may attract highly motivated buyers or reliable tenants.