2022 March Life Sciences Update

New Jersey

Market Summary • Life sciences companies continued to call New Jersey their home in 2021, a trend which has not waivered for quite some time. The highly-educated talent pool continues to motivate companies to expand within the state, along with an innovative ecosystem with top-rated research universities and a persistent pipeline of biotech start-ups. • As a cheaper alternative to some high-priced lab markets, the Garden State has recorded a rise in lab and R&D demand over recent years. • With the market tightening amid healthy activity, asking rents for life sciences space has risen markedly over the last two years. Compared to 2020, the average net asking rental rate has swelled by 12.2% to an all time high of $33.61 psf. • Investors remain extremely interested in purchasing life sciences facilities throughout the Garden State, especially fully leased assets. Institutional buyers such as Thor Equities, Harrison Street, and Lincoln Equities Group have all entered the life sciences marketplace in recent years.

Public & Private Funding (2021)

Rent vs. Vacancy Comparison

Fast Lab Stats 14.2 MSF Market Square Footage $33.61 $ Per SF 11.8% Vacancy 43.7K Total Life Sciences Employment & Talent Pool 141% Life Sciences Employment Growth Rate Since 2001

Company

Deal Type

Completed Type

$ Raised (MM)

$40

16%

Elusys

Grant

Dec 2021

VC

$350.0

$35

14%

Edda Technology

Later Stage VC Apr 2021

VC

$150.0

$30

12%

Modern Meadow

Later Stage VC Apr 2021

VC

$130.0

$25

10%

Vacancy Rate

Elucida Oncology

Later Stage VC Jan 2021

VC

$43.7

$20

8%

Claris Biotherapeutics

Early Stage VC Jul 2021

VC

$38.5

$15

6%

Flowonix

Later Stage VC Jan 2021

VC

$36.5

$10

4%

Starton Therapeutics

Early Stage VC Nov 2021

VC

$25.0

$5

2%

Average Asking Rent $/sf

Onkos Surgical

Later Stage VC Nov 2021

VC

$22.5

$0

0%

2015 2016 2017 2018 2019 2020 2021

Nuvectis Pharma

Early Stage VC Aug 2021

VC

$15.0

Neumentum

Early Stage VC Oct 2021

VC

$13.3

Asking Rents

Vacancy Rate

Representative Investment Sale Transactions (2021)

Address

Type

$ MM

RBA SF Date

Buyer

Representative Life Sciences Companies

170 Park Ave

Office

$47.0

147,125 Feb 2021

JLL Income Property Trust

86-90 Morris Ave

Office/Lab

$39.7

620,627 May 2021

Onyx Equities

Company

Type

Life Sciences Talent Pool

111 Ideation Way

High Tech/Flex/Lab

$36.8

163,990 Dec 2020

Harrison Street

Bristol Myers Squibb HQ, Research Facility

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

Johnson & Johnson HQ, Research Facility

Merck

HQ, Research Facility

Representative Lease Transactions (2021)

38,000

Bayer

HQ, Research Facility

Company

Address

Size (SF)

New/Renewal

Type

Quarter

Landlord

Regional Office, Research Facility Regional Office, Research Facility Regional Office, Research Facility

Pfizer

Wuxi Biologics

1 Cedar Brook Dr

90,000

New Lease

Office/Lab Q1

Eastern Properties

34,000

PMV Pharmaceuticals

1 Research Way

50,000

New Lease

Lab/R&D Q1

BioMed Realty Trust

Sanofi

HIKMA Pharmaceuticals

33 Technology Dr

49,539

New Lease

Office/Lab Q3

Atlantic Development

30,000

Novartis

26,783

CytoSorbents Corporation

305 College Rd E

48,511

New Lease

Office/Lab Q2

National Business Parks

NJ Biopharmaceuticals LLC

350 Carter Rd - Bldg 5

47,197

Expansion

Lab/R&D Q4

Equus Capital Partners

Novo Nordisk

Regional Office

26,000

NJ Biopharmaceuticals LLC

350 Carter Rd - Bldg 5

35,000

New Lease

Lab/R&D Q2

Equus Capital Partners

Teva Pharmaceuticals Ferring Pharmaceuticals

Regional Office, Research Facility

Number of Persons

Ascendia Phamaceuticals

661 Route 1 S

32,341

Expansion, Sublease Lab/R&D Q4

NJ Economic Development Authority

22,000

Average Annual Growth Rate 2001-2021: 1.2%

HQ, Research Facility

18,000

Top NIH-Funded Institutions (2017-2021) $326M Rutgers, The State University of N.J. $248M Princeton University $238M RBHS-New Jersey Medical School

2011

2017

2021

2012

2015

2013

2018

2019

2016

2014

2010

2001

2007

2020

2002

2005

2003

2008

2009

2006

2004

Bio Degree-Awarding Institutions, Metro Area • Rutgers University (New Brunswick) • Saint Peter’s University • William Paterson University • Princeton University

Research Contributor Jason Price jason.price@cushwake.com

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

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LIFE SCIENCES 2022 MARCH UPDATE