2022 March Life Sciences Update

Raleigh / Durham

Market Summary • One of the world’s largest life sciences clusters, North Carolina is home to 735 life sciences companies, 569 of which are located in the Research Triangle region in Raleigh/Durham. • Attracted to an extensive talent pool and stable business environment, several life sciences firms have recently announced plans to expand or develop new facilities. In total, the announcements reflect a $4 billion investment and the creation of 4,000 jobs. BioAgilytix Labs is one of many national companies that expanded their headquarters in 2021, with plans to create 878 jobs and invest $61.5M in Durham. • Demand for life sciences space remains strong, leading to numerous proposed projects (new construction and conversions) totaling approximately 8.2 msf. Nearly all new single-story construction is targeting cGMP/manufacturing occupants while the new R&D buildings will be multi-story facilities. • Rental rates are anticipated to go up as the quality of life sciences space improves. Additional factors such as dwindling land availability, along with increased land basis and increasing construction costs will also accelerate the increase in cost of life sciences space in Raleigh/Durham.

Public & Private Funding (2021)

Rent vs. Vacancy Comparison

Fast Lab Stats 12.3 MSF Market Square Footage $31.06 $ Per SF 12.3% Vacancy 19.4K Total Life Sciences Employment & Talent Pool 154% Life Sciences Employment Growth Rate Since 2001

Company

Deal Type

Completed Type

$ Raised (MM)

$35

25%

Bioventus

IPO

Feb 2021

Public

$120.0

$30

20%

StrideBio

Later Stage VC Mar 2021

VC

$81.5

$25

Xilis

Early Stage VC Jul 2021

VC

$70.0

Vacancy Rate

15%

$20

Istari Oncology

Later Stage VC Apr 2021

VC

$43.5

$15

10%

Inceptor Bio

Seed Round

Jun 2021

VC

$26.0

$10

Vestaron

Later Stage VC Feb 2021

VC

$21.0

5%

Myocardial Solutions

Later Stage VC Jun 2021

VC

$13.7

$5

Average Asking Rent $/sf

restor3d

Early Stage VC May 2021

VC

$13.3

$0

0%

2015 2016 2017 2018 2019 2020 2021

Cell Microsystems

Later Stage VC Nov 2021

VC

$12.7

Addyi

Later Stage VC Sep 2021

VC

$12.4

Asking Rents

Vacancy Rate

Representative Investment Sale Transactions (2021)

Address

Type

$ MM RBA SF Date

Buyer

The Stitch, 1001 Airport Blvd

Single tenant office/lab (former retail conversion)

$181.8

245,159 Dec 2021

Related Fund Management

Research Commons, 4101, 4301, 4501, 4201, & 4401 Research Commons

Partially leased office + land for conversion to life science campus

$138.0

429,758 Dec 2021

Oxford Properties Group

Representative Life Sciences Companies

Life Sciences Talent Pool

List represents top for-profit employers in the Research Triangle region based on employment.

The Genesis, 3029 E Cornwallis Rd

Partially developed site for conversion to life science campus

$91.0 100 acres Aug 2021

Alexandria Real Estate Equities

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

INQ 1101, 1101 Shiloh Glen Dr

Fully leased office/lab (former retail conversion)

$88.0

140,301 Dec 2021

TPG Capital

Company

Type

78 TW Alexander Dr

Lab

$50.5

236,976 Jun 2021

Eaton Vance RE

28,000

IQVIA

HQ, Contract Research

The Press, 2001 Evans Rd

Vacant office/warehouse for conversion to lab/cGMP

$38.0

276,812 Dec 2021

TPG Capital

Manufacturing and Administration

Perimeter's Edge, 1100 Perimeter Park Dr

Partially leased flex to lab conversion

$21.3

84,164 Sep 2021

Nuveen

Grifols

24,000

INQ 4300, 4300 Fayetteville Rd

Vacant retail for conversion to life science

$14.3

169,060 Dec 2021

DRA Advisors

Manufacturing, R&D, and Administration

Biogen

MidTown Biocenter, 350 E Six Forks Rd

Vacant retail for conversion to life science

$13.0

81,693 Nov 2021

East West Partners

20,000

BASF Agricultural Solutions

Research and Development

Average Annual Growth Rate 2001-2021: 0.5%

Representative Lease Transactions (2021)

16,000

Novo Nordisk Pharmaceutical Industries Manufacturing Syneos Health HQ, Contract Research Parexel International Corp HQ, Contract Research

Company

Address

Size (SF)

New/Renewal

Type

Quarter Landlord

12,000 Number of Persons

10,273

Invitae

The Stitch 1001 Airport Blvd Morrisville

250,000 New Lease Lab

Q2

Related Fund Management

Bradford & Berrington Centers 5827 & 5927 S Miami Blvd

Manufacturing and Administration

BioAgilytix Labs

173,928 New Lease/ Expansion

Lab

Q2 & Q4 Alidade Capital

8,000

bioMerieux Inc

Adverum Biotechnologies Inc (Subleased to Jaguar Gene Therapy) Parmer 14, 14 TW Alexander Dr

Office/Lab & Manufacturing Q1 & Q3 Alexandria Real Estate Equities

ICON

Contract Research

173,820 New Lease & Sublease

2011

2017

2021

2012

2015

2013

2018

2019

2016

2014

2010

2001

2007

2020

2002

2005

2003

2008

2009

2006

2004

Merck & Co. Inc

Manufacturing

CreeLED

Park Point Grid East & West 4001 NC 54

89,167 New Lease Office

Q3

Trinity Capital Advisors

Gilead Life Science

Midtown Plaza 305 Church at North Hills St

84,000 New Lease Office

Q2

Lionstone Partners

Bio Degree-Awarding Institutions, Metro Area

Top NIH-Funded Institutions (2017-2021) $2.8B Duke University $2.4B University of North Carolina Chapel Hill $890M Research Triangle Institute

Zoetis LLC

1050 Swabia Ct

78,394 New Lease Lab

Q2

W & G Associates

• Campbell University • Central Carolina Community College • Duke University • Durham Technical Community College • Meredith College • North Carolina Central University

• North Carolina State University • Shaw University • St Augustine’s University • University of North Carolina Chapel Hill • Wake Technical Community College • William Peace University

Azzur Cleanrooms

INQ 1101, 1101 Shiloh Glenn Dr Morrisville

75,300 New Lease Lab

Q2

TPG Capital

Xilis

31 Parmer Way

68,149 New Lease Office/Lab

Q4

Alexandria Real Estate Equities

Greenlight Bioscience

9 Laboratory Dr

62,772 New Lease Lab/Greenhouse Q3

Alexandria Real Estate Equities

BioLabs

Brightleaf Square 905 W Main

32,000 New Lease Lab

Q2

Asana Partners

Research Contributor Kristine Smith kristine.smith@cushwake.com

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

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LIFE SCIENCES 2022 MARCH UPDATE