A case for developing life science real estate in New York City

New York City, arguably the world's financial capital and the world's biggest real estate market, and home to some of the finest medical and academic research centers houses a little over a million square feet of life science focused real estate. Despite tremendous academic research potential and financial wherewithal, the life science industry of the city is comparatively much smaller to other New York City industries. In addition, it is much smaller in comparison to life science industry in other parts of the country. This thesis investigates the New York City market as a possible location for developing life science focused real estate assets. As a first step, the research will focus on identifying and analyzing the key demand indicators to establishing the demand for life science focused real estate. Next, the thesis will focus on lab space as a real estate product to understand its main components and value drivers. Upon understanding the market and the product, the research will put forward possible strategies for developing lab buildings in the city. Further, in support of the development strategies the research will look to prove the financial feasibility of developing that life science real estate in the city. This would involve financial analysis and contrasting returns from life science assets against office assets. Lastly, through real options framework the study will go on to demonstrate the benefits of applying flexibility to real assets, while financially valuing this flexibility using the Monte Carlo analysis.

Department dc:contributor.department

Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2017

Author dc:creator

• Batra, Shaurya

Advisor dc:contributor.advisor

• John F Kennedy.

• Center for Real Estate. Program in Real Estate Development.

Statement dc:rights

• MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/108897

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/108897