2022 March Life Sciences Update

Sector Growth = Increased Demand for Lab Space

Correlation between Talent & Lab Space Life Sciences Inventory & Employment Pool, Select U.S. Markets

Growth in Life Sciences Markets Under Construction Space & Projected Growth in Labor Pool

Lab Space: Current Inventory & Under Construction

Projected Growth in Labor Pool & Lab Inventory

50

Current Inventory Under Construction U/C as % of Inventory

16%

San Francisco Bay Area

45

SF Bay Area

50%

60

New York City

14%

40

50

40%

12%

Boston

35

Raleigh-Durham

40

10%

30

30%

San Diego

Seattle

30

Suburban MD

8%

Boston

25

MSF

20%

Suburban MD

20

San Diego

20

6%

Philadelphia

10%

New Jersey

10

15

Raleigh/Durham Life Sciences Inventory (MSF)

New Jersey

4%

Philadelphia

10

0%

0

Chicago Forecasted Labor Growth (2021-2025) 2%

Los Angeles

Denver

Seattle

5

Chicago

0%

New York City

0%

10%

20%

30%

40%

0

0

20

40

60

80

100

Under Construction as % of Current Inventory

Employment Pool (Thousands)

Source: Emsi, Cushman & Wakefield Research

Source: Cushman & Wakefield Research

Source: Esmi, Cushman & Wakefield Research

There is, of course, a correlation between the depth of the employment pool and the life sciences inventory in each market. Across these 12 markets, the average inventory-to-talent ratio is 462 sf. Several Western markets—as well as Raleigh-Durham—have higher ratios above 600 sf: San Francisco Bay Area, San Diego and Denver. Chicago is the only market with a ratio below 250 sf per potential worker. Boston has the largest labor pool and its inventory is scheduled to grow the most with over 9.6 msf of lab space currently under construction.

The 10 featured U.S. life sciences markets currently have 17.1 msf of lab space under construction. This represents 10.7% of current inventory. Currently, Boston (9.6 msf), San Francisco Bay Area (2.9 msf) and San Diego (2.3 msf) have the most construction in the pipeline. Although starting from a lower basis, double-digit increases in inventory are coming for New York City (26%), Chicago (14%) and Philadelphia (10%). New lab space is needed, especially in tight markets with sub-6% vacancy rates (e.g., San Diego, Philadelphia and Boston).

10 / CUSHMAN & WAKEFIELD

LIFE SCIENCES 2022 MARCH UPDATE