Joe Cavaluzzi is a contributor to Real Estate New Jersey, from which this article was excerpted.

The life sciences, including pharmaceutical companies and biotech, have been a crucial part of New Jersey's economic growth both historically and during recent economic expansions. Their space requirements have created demand across all types of New Jersey commercial and industrial real estate. In fact, New Jersey is home to more pharmaceutical companies than any other state in the country, or any other country in the world, according to the HealthCare Institute of New Jersey, a Bridgewater-based industry trade association made up of 25 pharmaceutical and medical technology companies.

But the state has been feeling the pressure from other, less expensive and less tax-laden regions in eastern Pennsylvania as well as southern and other northeastern states that are experiencing growth and gaining critical mass in the life science segments of their economies. The American pharmaceutical industry has grappled with layoffs and spending cuts and recently released statistics showing that drug makers continue to struggle with the discovery of blockbuster medicines.

In addition, many of the major pharmaceutical companies with a significant New Jersey presence are trying to cope with the competition from generic drug companies. The Food and Drug Administration approved only 17 new drugs last year, matching the lowest number of newly approved compounds since the peak of 53 approvals a decade ago.