New York City Welcomes Expansion of Biotech Companies

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The interior of a high-tech biotech laboratory where cutting-edge research is conducted.

News Summary

New York City is experiencing growth in the biotech sector as Cresilon and Rumi Scientific expand their operations at Industry City by signing long-term leases for laboratory space. Cresilon has doubled its space to enhance its manufacturing capacity, while Rumi Scientific relocates to a new lab. These expansions occur amidst a general slowdown in life science leasing activity in the city, showcasing a commitment to innovation within the biotech industry.

New York City Welcomes Expansion of Biotech Companies Amid Leasing Slowdown

New York City is witnessing growth in the biotech sector as two companies, Cresilon and Rumi Scientific, have announced significant expansions at Industry City. Both companies have signed multi-year leases for over 61,000 square feet of laboratory space, a move that contrasts with the current slowdown in life science leasing activity throughout the city.

Cresilon and Rumi Scientific Leases

Cresilon has signed a 10-year lease for 55,000 square feet, effectively doubling its existing space. The company specializes in producing a plant-based gel designed to control serious bleeding and has successfully raised over $100 million since its inception in 2010. The newly acquired space will increase Cresilon’s manufacturing capacity, especially after receiving FDA approval for the commercial use of its gel in August 2023.

Rumi Scientific, which focuses on developing therapies for neurological and kidney diseases, has committed to a five-year lease for a 6,000 square-foot lab. This marks a relocation for Rumi from its previous base at the New York Blood Center on the Upper East Side.

Financial Implications of the Leases

The financial arrangements for these leases fall between $30 and $40 per square foot. The minimum estimated costs for Cresilon’s new lease amount to approximately $16.5 million, while Rumi Scientific’s lease is expected to cost around $922,500.

Industry City’s Growing Life Science Sector

With these recent agreements, Industry City now hosts a total of seven life science tenants that occupy over 80,000 square feet of lab space. Other notable tenants include NYU Langone, Aanika Biosciences, and AOM Therapeutics, showcasing Industry City’s ongoing appeal as a hub for biotech innovation.

Current Leasing Trends in NYC’s Life Science Market

The expansion of Cresilon and Rumi Scientific is notable against a backdrop of a citywide slowdown in life science leasing. During the first quarter of this year, only 30,000 square feet of new lab space was leased, a decrease of 60% from the same period in 2024, when 73,000 square feet were leased. This slowdown has raised concerns about the future growth of the industry in New York City.

Future of Biotechnology in NYC

To bolster the biotech sector, Mayor Eric Adams initiated the $1 billion LifeSciNYC program in 2021, a plan aimed at developing 10 million square feet of lab space over the next decade. This initiative seeks to ensure that New York remains at the forefront of life sciences, even amid recent challenges in leasing activity.

Conclusion

The expansion of Cresilon and Rumi Scientific at Industry City underscores a continued commitment to growth within the biotechnology sector, despite broader market trends. As New York City works to enhance its life science landscape, companies like Cresilon and Rumi represent the potential for innovation and development in this essential field.