This Week's Philadelphia Deal Sheet

The New Jersey life sciences sector closed out 2023 on a high note, according to a JLL report, with life sciences and pharmaceutical firms inking two of the five largest deals across all sectors last year.

Nearly 20% of overall leases signed in the Garden State came from life sciences firms, according to JLL, including Sanofi’s 260K SF lease at M Station West, now under construction in Morristown, and Johnson & Johnson consumer health spinoff Kenvue leasing a 191K SF newly renovated office building at the Summit East campus in Summit for its global headquarters.

“Persistent demand for modern office and lab facilities is encouraging new construction endeavors in the Garden State,” the report's authors said, adding last year's biggest news was Nokia announcing plans to relocate its Bell Labs campus from Murray Hill into a 360K SF build-to-suit lab and office tower at the HELIX in New Brunswick.

Cellares also opened a new facility thanks to $255M in Series C funding. The new manufacturing plant is at 95 Corporate Drive in Bridgewater. The former Pfizer facility will manufacture tens of thousands of cell therapy drug products per year, according to JLL.

LEASES

A 6K SF property at 300 Pennsylvania Ave. has been leased by Newmark's Tim Brogan to a new tenant, Newmark announced last week. The Oreland retail site formerly housed a lighting company. Brogan declined to name the new tenant to Bisnow but said the deal closed last month.

THIS AND THAT

Office occupancy is back following some sour weather in the Northeast, according to Kastle Systems. Philadelphia’s in-office badge swipes rose 4.2 points to 43.3% of pre-pandemic figures, according to Kastle data for the week ending Feb. 21. 

Occupancy was up in most metros. Only San Francisco and Los Angeles saw declines, falling 1.9 points to 44% and 0.7 points to 46.4%, respectively.