2022 March Life Sciences Update

New York

Market Summary • New York City (NYC) is a rapidly growing recipient of life sciences investment capital, with venture capital funding climbing to $6.2 billion in 2021, a 52.6% increase over 2020. • Investors and developers worldwide continue to grow their presence in NYC as it has one of the most educated and diverse talent pools in the nation along with first class academic and medical institutions and premier venture capital ecosystems. • The life sciences industry has steadily expanded its footprint in NYC over the past several years with state and city incentives continuing to encourage developers to build labs for medical research. In 2021, the city government announced a doubling of its investment into the sector—$1 billion—to accelerate its growth: $430 million for new laboratory and incubator construction; $450 million for non-profit facilities; and $20 million for internship programs and start-up ventures. • NYC is continuing to expand its life sciences presence with 2.6 msf expected to be delivered within the next five years, including Alexandria Center’s North Tower, Deerfield’s 325,000 sf redevelopment of 345 Park Avenue South, and Taconic Partners’ 399,000 sf redevelopment of 125 West End Avenue.

Public & Private Funding (2021)

Rent vs. Vacancy Comparison

Fast Lab Stats 3.1 MSF Market Square

Company

Deal Type

Completed Type

$ Raised (MM)

35%

$120

Capsule Pharmacy

Later Stage VC Apr 2021

VC

$300.0

30%

$100

Immunai

Early Stage VC Oct 2021

VC

$274.0

25%

Footage $97 $ Per SF 32.8% Vacancy 58.2K Total Life Sciences Employment & Talent Pool 144% Life Sciences Employment Growth Rate Since 2001

$80

Immunai

Later Stage VC Dec 2021

VC

$204.0

Vacancy Rate

20%

Trialspark

Later Stage VC Sep 2021

VC

$159.5

$60

15%

Unite Us

Later Stage VC Mar 2021

VC

$150.0

$40

Paige

Later Stage VC Mar 2021

VC

$125.0

10%

HiberCell

Later Stage VC May 2021

VC

$114.4

$20

5%

Average Asking Rent $/sf

Elevation Oncology

IPO

Jun 2021

Public

$100.0

$0

0%

C2i Genomics

Early Stage VC Apr 2021

VC

$100.0

2015 2016 2017 2018 2019 2020 2021

Opentrons Labworks, Inc Later Stage VC Sep 2021

VC

$200.0

Asking Rents

Vacancy Rate

Representative Investment Sale Transactions (2021)

Address

Type

$ MM

RBA SF Date

Buyer

707 11th Ave

Office (will convert to Lab)

$95.0

160,000 Dec 2021

Beacon Hill Capital & Georgetown Co

$95.0 (plans to invest an additional $120.0M on conversion)

43-10 Court Sq

Industrial (will convert to Lab)

200,000 Dec 2021

Longfellow Real Estate Partners

Life Sciences Talent Pool

Representative Life Sciences Companies

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

Company

Type

NYU Langone

HQ

Representative Lease Transactions (2021)

38,000

Pfizer

HQ

35,059

Company

Address

Size (SF)

New/Renewal

Type

Quarter

Landlord

Mount Sinai

HQ

Mt. Sinai Icahn School of Medicine

787 11th Ave

165,000

New Lease

Office/Lab Q1

The Georgetown Company

34,000

Opentrons

45-18 Court Sq

95,000

New Lease

Office/Lab Q3

GFP Real Estate/ King Street Properties

Schrodinger

HQ

C16 Biosciences

619 W 54th St

19,000

New Lease

Office/Lab Q2

Silverstein/Taconic Partners

Flatiron Health

HQ

30,000

Black Diamond Therapeutics

430 E 29th St

18,120

New Lease

Office/Lab Q2

Alexandria Real Estate Equities

Imclone Systems LLC

HQ

Helaina

345 Park Ave S

18,000

New Lease

Office/Lab Q2

Deerfield Management

26,000

Opentrons

HQ

Average Annual Growth Rate 2001-2021: 0.7%

RegenLab USA

140 58th St (BioBAT)

15,000

New Lease

Office/Lab Q4

New York Economic Development Corp.

Roche

Research Facility

Immunai

430 E 29th St

12,288

New Lease

Office/Lab Q3

Alexandria Real Estate Equities

Number of Persons

22,000

Volastra Therapeutics

1361 Amsterdam Ave

10,000

New Lease

Office/Lab Q2

Janus Property Company

Intercept Pharmaceuticals, Inc. HQ

Hemogenyx

1361 Amsterdam Ave

10,000

New Lease

Office/Lab Q4

Janus Property Company

Kadmon

HQ

18,000

Envisagenics

30-02 48th Ave

7,500

New Lease

Office/Lab Q4

Alexandria Real Estate Equities

Top NIH-Funded Institutions (2017-2021) $2.5B Columbia University Health Sciences $1.9B New York University School of Medicine $1.9B Icahn School of Medicine at Mount Sinai

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 • Columbia University • New York University • Fordham University • City College of New York • New York Institute of Technology

Research Contributor Lori Albert lori.albert@cushwake.com

Reed Hatcher reed.hatcher@cushwake.com

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

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LIFE SCIENCES 2022 MARCH UPDATE