Joe Cavaluzziis a contributor to Real Estate New Jersey, fromwhich this article was excerpted.

The life sciences, including pharmaceutical companies andbiotech, have been a crucial part of New Jersey's economic growthboth historically and during recent economic expansions. Theirspace requirements have created demand across all types of NewJersey commercial and industrial real estate. In fact, New Jerseyis home to more pharmaceutical companies than any other state inthe country, or any other country in the world, according to theHealthCare Institute of New Jersey, a Bridgewater-based industrytrade association made up of 25 pharmaceutical and medicaltechnology companies.

But the state has been feeling the pressure from other, lessexpensive and less tax-laden regions in eastern Pennsylvania aswell as southern and other northeastern states that areexperiencing growth and gaining critical mass in the life sciencesegments of their economies. The American pharmaceutical industryhas grappled with layoffs and spending cuts and recently releasedstatistics showing that drug makers continue to struggle with thediscovery of blockbuster medicines.