The Medicine Chest of the World continues to earn that distinction, with New Jersey housing eight of the 10 largest life sciences companies across the globe and sustaining demand.

Colliers’ latest life sciences market outlook explores what keeps companies in New Jersey, along with what keeps them coming here. The draws remain the same: location, a first-class and extensive workforce and research institutions to round out the ecosystem.

Those assets helped sustain local leasing activity. And despite job cuts from several pharmaceutical companies, overall demand for life sciences space remained positive, Colliers noted. However, the firm said macroeconomic challenges weigh on tenant demand, impeding “their ability to grow and lease space.”

As vacancy rates continue to rise, national net absorption was negative for the second-straight year while new supply also fell. Colliers noted emerging signs of stabilization and improvement. The firm referenced increasing public company valuations, expanding industry payrolls, onshoring momentum and AI adoption in the research process as harbingers.

New Jersey is further boosted by fundamentals such as housing the highest density of scientists and engineers per square mile in the U.S. Additionally, the state ranks second for its – expanding – pharmaceutical manufacturing workforce.

New Jersey life sciences highlights

Among significant lease transactions the report highlights Legend Biotech taking 57,325 square feet of space in Bridgewater; as well as life sciences incubator Portal Innovations’ agreement to occupy 30,000 square feet at the HELIX hub rising in New Brunswick.

While New Jersey (and Orange County) delivered the least amount of new space last year out of the nation’s top life sciences markets, Colliers noted ground-up construction did help drive significant new occupancies.

The firm highlighted the arrival of the brand-new Kenvue global headquarters in Summit, which features a 100,000-square-foot lab building; and Aurobindo Pharma’s 170,000-square-foot manufacturing expansion in Mercer County.

In the Garden State, Colliers reported vacancy rose slightly, from 14.4% to 14.9%. Nationally, the firm reported the figure increased from 20.4% to 23.5% by the end of 2025.

It noted available New Jersey lab space is concentrated in a few large blocks. Colliers highlighted NEST in Kenilworth. The former Merck campus is undergoing a multimillion-dollar renovation, and will also house a data center from New Jersey company CoreWeave.

On the outlook, Colliers said vacancy could stabilize as emerging biotechs drive selective demand.

South Jersey also made an appearance in the report, as part of the Philadelphia/Tri-State region. Among the highlights is the 92,000-square-foot under-development innovation center from Coriell Institute for Medical Research coming to Camden.