Market Demand Study for Commercial Biotechnology, Biomedical and Bioinformatics Facilities in New York City

Overview

New York City has the key prerequisite to support the development of the third biotechnology/biomedical cluster in the United States, namely the presence of top academic and research institutions and a demonstrated ability to generate intellectual capital that can be commercialized. However, the city lacks the appropriate infrastructure—affordable commercial space located within proximity to the academic institutions—to capture and retain this demand. Given that the demand for biotech/biomed space in the early years will come from start-up and early stage companies, public incentives are needed to help subsidize the first one million square feet of commercial space that is the minimum required to anchor an industry cluster. Since these companies cannot afford to pay rent levels that will support the economics of constructing new biotech/biomed facilities, development of the initial “critical mass” of facilities will require a public-private partnership.

New York State and City have much to gain from an investment in the city’s future role in the bioeconomy. A combination of direct funding, contribution of real estate, and tax incentives in an amount of less than $100 million will generate one million square feet of commercial facilities and serve as the catalyst to developing a local biotechnology/biomedical cluster. These facilities should be well located relative to academic and research institutions, but open to all related businesses and not tied to a single institution. Collaborative leadership and direction from the academic institutions as to where and how these facilities are developed is essential.