CHATHAM, NJ—Pharmaceutical companies will need to lower their asset price expectations as they bail out of unneeded office and research facilities, Jeffrey Garibaldi, president of the Garibaldi Group, a leading New Jersey developer, tells GlobeSt.com exclusively.
Echoing comments GlobeSt.com reported yesterday by James W. Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University, Garibaldi tells GlobeSt.com that “The challenge Big Pharma faces today is that pharma doesn't operate in major research campuses like the ones built over the past 50 years.”
“The trend is definitely now with partnering, collaborating and licensing between Big Pharma and Bio-Life sciences that has taken drug discovery to a more efficient, cost effective and nimble approach,” says Garibaldi. “Consequently, pharmaceutical companies need to adjust their sale price expectations and write the asset value down to a level that will enable a well-capitalized developer to invest the significant capital required to repurpose and re-engineer for multi-tenant and reintroduce the property to attract multiple users.”
As reported by GlobeSt.com, several large pharmaceutical companies have realigned their properties in New Jersey and several, including Sanofi Aventis, Roche, and Novartis (in Suffern, NY, near the NJ border), have placed large research and office campuses on the market.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
