2022 March Life Sciences Update

Philadelphia

Market Summary • Philadelphia continues to be a top life sciences market, with 2021 seeing steady gains across almost all metrics. • When compared with other top life sciences markets, the Philadelphia market presents cost advantages in terms of average salaries and lab rents. • Cell and gene therapy companies dominated the market share of growth and new transactions in R&D, HQ and manufacturing facilities with Century Therapeutics, Carisma Therapeutics, Aro Biotherapeutics, Spirovant, AskBio (Bayer), and Interius all significantly expanding operations. • Spark Therapeutics/Roche announced plans to build a $575 million gene therapy R&D and manufacturing facility in University City, and WuXi AppTec announced plans to build a 1.7 msf testing and manufacturing facility in Delaware. • Local mRNA talent as well as the emergence of mRNA and cell and gene therapy cross-collaborations may fuel the next industry growth sector.

Public & Private Funding (2021)

Rent vs. Vacancy Comparison

Fast Lab Stats 17.8 MSF Market Square Footage $41.07 $ Per SF 5.0% Vacancy 38.6K Total Life Sciences Employment & Talent Pool 116% Life Sciences Employment Growth Rate Since 2001

Company

Deal Type

Completed Type

$ Raised (MM)

$50

12%

Century Therapeutics

IPO

Jun 2021

Public

$211.0

10%

$40

Nikang Therapeutics

Later Stage VC May 2021

VC

$200.0

8%

Century Therapeutics

Later Stage VC Feb 2021

VC

$160.0

Vacancy Rate

$30

Aro Biotherapeutics

Early Stage VC Dec 2021

VC

$90.3

6%

Sepax Technologies

Later Stage VC Nov 2021

VC

$78.1

$20

4%

Interius BioTherapeutics

Later Stage VC May 2021

VC

$76.0

$10

2%

MOBILion Systems

Later Stage VC Jul 2021

VC

$60.0

Average Asking Rent $/sf

Carisma Therapeutics

Early Stage VC Mar 2021

VC

$59.0

0%

$0

2015 2016 2017 2018 2019 2020 2021

iECURE

Early Stage VC Sep 2021

VC

$50.0

Mineralys

Early Stage VC Apr 2021

VC

$40.0

Asking Rents

Vacancy Rate

Representative Investment Sale Transactions (2021)

Address

Type

$ MM

RBA SF Date

Buyer

3701 Market St

Lab

$79.5

140,913 Jun 2021

GI Partners

Oaklands Corporate Center

Portfolio

$43.0

260,691 Nov 2021

Griffith Properties

Life Sciences Talent Pool

Representative Life Sciences Companies

400 Devon Park Dr

Lab Conversion

$19.5

138,065 May 2021

Mainstreet Capital

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

795 Horsham Rd

Lab Conversion

$14.5

110,000 Jan 2022

Eurofins

Company

Type

550 Blair Mill Rd

Lab Conversion

$12.1

97,123 Sep 2021

Spaulding & Slye

AstraZeneca

North America HQ

28,000

1850 N Gravers Rd

Lab Conversion

$7.7

72,000 Sep 2021

Spaulding & Slye

Century Therapeutics HQ, Research Facility

Amicus Therapeutics HQ, Research Facility

24,000

Representative Lease Transactions (2021)

GlaxoSmithKline

Research Facility

20,119

20,000

Company

Address

Size (SF)

New/Renewal

Type

Quarter

Landlord

J&J/Janssen

Regional HQ, Research Facility

Penn Gene Therapy

411 Swedeland Rd

150,000

New Lease

Office/Lab Q2

MLP Ventures

Teva Pharmaceuticals U.S. HQ

IQVIA

650 E Swedesford Rd

54,427

New Lease

Office/Lab Q4

Prologis

16,000

Endo

Research Facility

B.Labs

2929 Arch St

50,000

New Lease

Office/Lab Q2

Brandywine Realty Trust

Average Annual Growth Rate 2001-2021: 0.2%

Number of Persons

Merck

HQ, Research Facility

Idorsia Pharmaceuticals

100 Matsonford Rd

44,045

Renewal

Office/Lab Q4

Brandywine Realty Trust

12,000

Incyte

Research Facility

Biomeme

401 North Broad St

44,000

New Lease

Office/Lab Q2

Netrality Properties

Roche/Spark Therapeutics

HQ, Research Facility, Manufacturing

Avid Radiopharmaceuticals

3711 Market St

38,347

Renewal

Office/Lab Q4

Ventas

8,000

Roquette

727 Norristown Rd – Building 9

24,000

New Lease

Office/Lab Q3

Beacon

2011

Imvax

601 Walnut St

21,000

New Lease/Expansion cGMP

Q4

Keystone Property Group

2017

2021

2012

2015

2013

2018

2019

2016

2014

2010

2001

2007

2020

2002

2005

2003

2008

2009

2006

2004

Top NIH-Funded Institutions (2017-2021) $2.8B University of Pennsylvania $747M Children’s Hospital of Philadelphia $406M Temple University of The Commonwealth

Organon

727 Norristown Rd – Building 4

16,773

New Lease

Office/Lab Q1

Beacon

Intergral Molecular

One uCity Square

16,000

New Lease

Office/Lab Q4

Ventas

Bio Degree-Awarding Institutions, Metro Area • Drexel University • Temple University • University of Delaware

Research Contributor Michael Hanes michael.hanes@cushwake.com

• University of Pennsylvania • University of the Sciences

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

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LIFE SCIENCES 2022 MARCH UPDATE