2022 March Life Sciences Update

Boston

Market Summary • Greater Boston has become an increasingly dominant center of the life sciences industry, with a continued regular international audience as well as an influx of scientists looking to contribute to the growing environment. • Nearly 15 msf of lab product is either under construction or in pre construction phases as the total inventory of lab product is likely to exceed 40 msf by 2025. • A lack of readily available developable land in Kendall Square, the biotechnology industry center, has led to the formation of new industry area hotspots, including Somerville’s Union Square, Boston’s Seaport District and numerous areas within Watertown. • Following a decrease in direct flights in 2020, daily direct air service to four continents has resumed from Boston Logan International Airport, an important connection for the highly collaborative life sciences industry. • Housing has emerged as a critical feature in complementing bio growth. In some cases, future occupants of under construction lab buildings have reserved units in nearby, under construction multifamily assets with planned delivery dates close to tenant occupancy.

Public & Private Funding (2021)

Rent vs. Vacancy Comparison

Fast Lab Stats 25.1 MSF Market Square Footage $87.93 $ Per SF 2.5% Vacancy 87.4K Total Life Sciences Employment & Talent Pool 239% Life Sciences Employment Growth Rate Since 2001

Company

Deal Type

Completed Type

$ Raised (MM)

$20 $30 $40 $50 $60 $70 $80 $90 $100

7%

EQRx

Early Stage

Jan 2021

VC

$570.0

6%

ElevateBio

Later Stage

Mar 2021

VC

$525.0

5%

Neumora

Early Stage

Oct 2021

VC

$400.0

Vacancy Rate

4%

XtalPi

Later Stage

Aug 2021

VC

$400.0

3%

Generate Biomedicines

Later Stage

Nov 2021

VC

$370.0

Adagio Therapeutics

Later Stage

Apr 2021

VC

$335.5

2%

Adagio Therapeutics

IPO

Aug 2021

Public

$309.4

1%

Average Asking Rent $/sf

$0 $10

Cardurion Pharma

Early Stage

Oct 2021

VC

$300.0

0%

Valo

Early Stage

Mar 2021

VC

$300.0

2015 2016 2017 2018 2019 2020 2021

Verve Therapeutics

IPO

Jun 2021

Public

$266.7

Asking Rents

Vacancy Rate

Representative Investment Sale Transactions (2021)

Address

Type

$ MM

RBA SF Date

Buyer

401 Park Dr, Boston

Office (will convert to Lab)

$944.2

973,145 Jan 2021

Alexandria Real Estate Equities

201 Brookline Ave, Boston

Lab

$539.0

510,116 Jan 2021

Alexandria Real Estate Equities

101 South St, Somerville

Lab

$478.3

289,000 Dec 2021

TPG Capital

Representative Life Sciences Companies

Life Sciences Talent Pool

135 Morrissey Blvd, Boston

Active Lab Conversion

$362.5

693,921 Aug 2021

Beacon Capital Partners

Talent pool includes life science professionals not currently employed in the life science sector

Company

Type

470 Atlantic Ave, Boston

Office (will convert to Lab)

$238.0

346,225 Dec 2021

Nan Fung Life Sciences

Biogen

HQ

36,426

2 Financial Ctr, Boston

Office (will convert to Lab)

$210.0

220,000 Aug 2021

Nan Fung Life Sciences

38,000

321 Harrison Ave, Boston

Active Lab Conversion

$154.3

233,901 Apr 2021

Biomed Realty Trust

bluebird bio

HQ

34,000

1 Canal Pk, Cambridge

Office (will convert to Lab)

$131.0

112,000 Jul 2021

Breakthrough Properties

Bristol Myers Squibb Regional HQ

550 Arsenal St, Watertown

Mall (will convert to Lab)

$130.0

260,867 Apr 2021

Alexandria Real Estate Equities

30,000

CRISPR Therapeutics

HQ

93 Worcester St, Wellesley

Office (will convert to Lab)

$111.5

270,000 Sep 2021

Beacon Capital Partners

Moderna Therapeutics HQ

26,000

Novartis

Regional HQ

Representative Lease Transactions (2021)

Average Annual Growth Rate 2001-2021: 3.5%

22,000 Number of Persons

Pfizer

Regional HQ

Company

Address

Size (SF)

New/Renewal

Type

Quarter

Landlord

18,000

Sanofi

Regional HQ

Prime Medicine

60 First St

124,000

New

Lab

Q4

Anchor Line

Tscan Therapeutics

880 Winter St

113,487

New

Lab

Q4

Boston Properties

Takeda Pharmaceuticals Regional HQ

2011

2017

2021

2012

2015

2013

2018

2019

2016

2014

2010

2001

2007

2020

2002

2005

2003

2008

2009

2006

2004

Kymera Therapeutics

AOTC 1

100,624

New

Lab

Q1

Alexandria Real Estate Equities

Vertex Pharmaceuticals HQ

Avencell

500 Forge St

55,776

New

Lab

Q1

Boylston Properties

Bio Degree-Awarding Institutions, Metro Area • Boston University • Fitchburg State University • Harvard University • MIT • Mount Wachusett Community College • Salem State University • Tufts University • University of Massachusetts Lowell

Curie Therapeutics

100 Forge St

40,000

New

Lab

Q4

Boylston Properties

Top NIH-Funded Institutions (2017-2021) $2.5B Massachusetts General Hospital $1.8B Brigham and Women’s Hospital $972M Harvard Medical School

RVAC Medicines

880 Winter St

37,202

New

Lab

Q4

Boston Properties

Biocytogen

300 Third St

35,000

New

Lab

Q4

Boston Properties

Alchemlab

1050 Winter St

25,000

New

Lab

Q4

Greatland Realty Partners

Abata Therapeutics

100 Forge St

23,600

New

Lab

Q4

Boylston Properties

Research Contributor Brendan Carroll brendan.carroll1@cushwake.com

Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Emsi, Pitchbook

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LIFE SCIENCES 2022 MARCH UPDATE