By: Jerry Fennelly, SIOR, President of Fennelly Associates
The BIOSECURE Act (H.R. 7085) is poised to make waves not only in the biotechnology sector but also in the New Jersey commercial real estate market, particularly in the life sciences and lab space sectors. By prohibiting U.S. companies from doing business with certain Chinese biotech firms due to national security concerns, this bill could create significant shifts in lab space availability across New Jersey, offering new opportunities for domestic biotech firms and investors.
What is the BIOSECURE Act?
The BIOSECURE Act, introduced in January 2024, seeks to cut off federal contracts with several major Chinese biotech companies, including WuXi AppTec, WuXi Biologics, BGI Group, MGI, and Complete Genomics. These firms have been flagged for their ties to China’s government and military, with concerns that they could compromise U.S. genetic data security and disrupt the biopharmaceutical supply chain. The act has received broad bipartisan support and is now up for consideration in the Senate.
How the BIOSECURE Act Could Impact New Jersey’s Commercial Real Estate
New Jersey is a hub for biotech and life sciences industries, home to numerous research institutions and pharmaceutical giants. With WuXi Biologics and other targeted firms operating within the U.S., particularly in states like New Jersey, the act could result in these companies vacating valuable lab spaces. This could free up prime biotech lab space in high-demand areas such as Princeton, Edison, and Trenton, where commercial real estate for life sciences is highly sought after.
Opportunities for New Jersey’s Biotech Sector

68 Culver Road, Monmouth Jct NJ 08852 S
With the potential exit of Chinese biotech firms from the U.S. market, domestic biotech companies in New Jersey stand to benefit. As companies like BGI and WuXi AppTec vacate lab and research facilities, there will be a surge in available space, which can be repurposed by U.S.-based firms for research, drug development, and other biotech innovations. This influx of high-quality lab space will address the ongoing demand for specialized facilities in New Jersey’s commercial real estate market, where biotech firms continue to drive expansion.
Increased Investor Interest in New Jersey’s Life Sciences Market
Commercial real estate investors focusing on New Jersey’s thriving biotech sector are likely to see new opportunities as lab spaces previously occupied by Chinese companies become available. Investors may find vacated properties in strategic locations like Princeton and New Brunswick, creating a competitive environment for leasing to U.S. biotech firms. With New Jersey being a core location for biotech and pharmaceutical research, these spaces could be rapidly redeveloped and leased, ensuring minimal downtime and maximizing returns
Long-Term Effects on New Jersey’s Commercial Real Estate
While the BIOSECURE Act is designed to protect U.S. national security, it also has the potential to reshape New Jersey’s commercial real estate landscape. Lab spaces, especially those designed for high-tech biotech research, are in high demand. As Chinese firms vacate, New Jersey’s biotech firms, startups, and research institutions will benefit from the new availability of lab space, further positioning the state as a leader in life sciences.
Downward Pressure on Lease Prices
As more lab spaces become available in New Jersey due to the exit of these firms, there could be a slight downward pressure on leasing prices. In locations where biotech space was previously scarce, such as Princeton or Edison, this could create opportunities for smaller firms or startups to secure prime facilities at more affordable rates. Conversely, for property owners, this may require more aggressive leasing strategies to maintain occupancy.
A Potential New Era for New Jersey’s Biotech Real Estate Market
The BIOSECURE Act is set to have a lasting impact on both the U.S. national security landscape and the commercial real estate market in New Jersey. As Chinese biotech firms potentially exit the market or mothball their facilities, the increased availability of new lab spaces in key New Jersey hubs could fuel the growth of domestic biotech companies and create new investment opportunities in the life sciences sector. With New Jersey already a critical player in biotech, the state is well-positioned to capitalize on these changes, making it a more attractive location for biotech startups and established firms alike. Looking ahead, owners will need to continue to invest in their spaces to ensure they can attract innovative foreign companies. Buildings that do not meet modern standards will quickly fall behind in such a dynamic market. It’s also important to be in regular communication with tenants to understand how their businesses are changing to ensure their spaces meet their needs.
By working with an experienced broker possessing unmatched local market knowledge, owners can ensure their spaces are aligned with the needs of both domestic and foreign biotechnology businesses to find success in the current market conditions.