John McCloud is editor of Industry Property Journal, from which this article is excerpted.

Sugar Land, TXBioMed Realty Trust‘s January purchase of the remaining US life science holdings of Lyme Properties represents one pole of the current biotech/pharmaceutical market. New York City-based Pfizer Pharmaceutical Co.’s decision to cut about 10,000 employees from its global workforce and close several million sf of plants in New York City, Omaha, NE and Ann Arbor and Kalamazoo, MI represents the opposite pole. What’s unclear is which pole best reflects the current state of the industry.

Without question, BioMed believes strongly in its position. The San Diego-based REIT paid the Hanover, NH developer $511 million for 600,000 sf of completed and uncompleted buildings and now plans to spend an additional $100 million to finish the uncompleted buildings. The spending clearly won’t stop there, for the purchase includes an 80-acre site in New Haven proposed for the 700,000-sf expansion of the Science Park at Yale and a parcel in Houston earmarked for development of the 500,000-sf Center for Life Science. Last year BioMed paid Lyme $427 million for the 702,900-sf Center for Life in Boston. It plans to spend approximately $700 million to finish the project, which was in construction at the time of purchase.

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