Life science leaders say workforce incentives, lab space growth crucial to bolster industry

BY JACQUELINE NEBER

A$50 million preclinical drug discovery firm is coming to Midtown, said Hope Knight, Empire State Development’s chief executive and commissioner, speaking before an audience at Crain’s life science forum event last week.

The lab, supported by a $25 million grant from ESD, is one step in achieving one of the city’s major goals for its burgeoning life science industry: getting more lab space.

In addition to Knight, Dr. Ayman El-Mohandes, dean of City University of New York’s School of Public Health and Health Policy, and John Cahill, senior vice president of New York Metro at JLL’s Life Science Practice Group, spoke of the biggest goals and challenges facing the sector. They identified workforce development, keeping students and companies in the city, and creating more lab space as three pillars of New York’s ultimate goal, which is to become a dominant player in the industry.

emphasized the importance of prebuilt lab space; the most common question clients ask when they’re looking for lab space is whether it’s ready to go, he said.

He also pointed out that New York’s supply of lab space—which takes a longer time to develop than traditional office space—is finally catching up to firms’ demand. He added that while office spaces are empty, converting them into labs would be costly and time-consuming. Cahill expects the city’s lab space to double within the next five years–and once it hits 10 million square feet, to be comparable with the more established cities. New York has just under 3 million square feet of space.

El-Mohandes said wet labs have also become more flexible and easier to accommodate in recent years with the advent of artificial intelligence and pharmaceutical innovation powered by computers, not Bunsen burners. He added that these spaces will continue to be a draw for companies and talent who want to practice life sciences here.

ing to support students and attract top-notch faculty.

For years New York has been seen as playing second fiddle to Boston and San Francisco in the life sciences. But Knight countered that the city has made substantial progress, considering that it has only been in the game for about six years.

El-Mohandes and Cahill both spoke to the importance of real estate availability as the industry continues to grow in the city. New York’s life science leasing activity hit record highs last year, and Cahill

Demand for jobs in the life sciences is increasing; compared to several years ago, when talent and firms would leave to work with Harvard or Massachusetts Institute of Technology, the number of people applying to jobs at biotechnology firms in the city has grown substantially, Cahill said. The city’s public-private partnerships and investments have led to more of the workforce staying.

The city’s high cost of living and lack of affordable housing, however, present a barrier for the life science industry—particularly, El-Mohandes said, for schools try-

More housing is essential for growing the city’s life science footprint, he said, as is fixing other issues that prevent students from learning successfully. He mentioned that CUNY lent 50,000 laptops to students during the pandemic—but many students couldn’t use them in homes without stable internet connections.

Above-market wages

Knight said that life science companies receiving state funding should pay above-market wages and leverage community partnerships to recruit employees who identify as part of underserved groups. That requires a whole different negotiation strategy for incentives packages, she said, but it’s a necessity.

When asked how New York will measure the impact of its life science investments, Knight said funding is often allocated to projects or firms once they achieve milestones. Creating jobs is one such measure, she added. Cahill pointed out that impact can also be measured by lab space utilization over the years.

While biotech companies have high fail rates and are considered high risk, as long as the market is strong and demand for space exists, there will be a line of firms ready to invest, he said.

“It’s playing the long game,” he said. “There will always be people seeking that space.”

The panelists had different visions for what the city’s life science sector will look like 10 years from now.

Cahill expects lab space to double, at least, and for research and development to grow. Furthermore, he said, commercialization in cell and gene therapy, customized medicine and translational medicine will pick up speed.

El-Mohandes oriented his vision of the future around the challenges New York must overcome: cultural, economic and geographic barriers to growth. However, New York is unique in “its diversity as part of our DNA,” he said. As long as the city continues to have talented people and useful buildings, life sciences will continue to gain momentum, he said.

Knight is looking to the growth of companies and research initiatives for cell and gene therapy, continued workforce development, and more labs.

“We’ll have a bigger share of the pie than places who got their start before we did,” she said. ■