2022 March Life Sciences Update

San Francisco Bay Area

Market Summary • With over 46 msf of lab inventory, the San Francisco Bay Area continues to experience aggressive industry expansion by its occupancy base. • The region’s highly educated workforce, reinforced by its proximity to elite research institutions such as UCSF, Stanford and UC Berkeley, has made the Bay Area one of the most elite and active life sciences clusters in the world. • Key in funding growth companies across the Bay Area is the world’s largest life sciences venture capital and private equity concentration. • Biotechnology and pharmaceuticals represent most of the life sciences leasing activity in the market, though the medical device and health tech sectors are extremely active as well. • From early-stage startups through the largest life sciences companies, demand has outpaced existing supply in most Bay Area markets 2-to-1. • Market demand has created a continually landlord-favorable market with developers delivering 7.9 msf over the last six years, 2.9 msf presently under construction and more than 16 msf in various stages of planning. Current and planned construction have been dominated by speculative projects—both ground-up and conversions from office. • The majority of life sciences product in the Bay Area is located across three major markets: San Francisco proper, the San Francisco Peninsula and the East Bay.

Public & Private Funding (2021)

Rent vs. Vacancy Comparison

Fast Lab Stats 46.2 MSF Market Square Footage $68.16 $ Per SF 10.87% Vacancy 63.0K Total Life Sciences Employment & Talent Pool 222% Life Sciences Employment Growth Rate Since 2001

$70

14%

Company

Deal Type

Completed Type

$ Raised (MM)

$60

12%

Zymergen

IPO

Apr 2021

Public

$500.0

$50

10%

Lyell

IPO

Jun 2021

Public

$425.0

Vacancy Rate

Caribou Biosciences

IPO

Jul 2021

Public

$304.0

$40

8%

Freenome

Later Stage

Dec 2021

VC

$300.0

$30

6%

Altos Labs

Early Stage

Sep 2021

VC

$270.0

$20

4%

Sonoma Biotherapeutics Early Stage

Aug 2021

VC

$265.0

$10

2%

Zipline

Later Stage

Jun 2021

VC

$250.0

Average Asking Rent $/sf

$0

0%

Cytek

IPO

Jul 2021

Public

$247.6

*

2015 2016 2017 2018 2019 2020 2021

Sight Sciences

IPO

Jul 2021

Public

$240.0

Asking Rents

Vacancy Rate

Graphite Bio

IPO

Jun 2021

Public

$238.0

* Santa Clara County vacancy of 19.6% contributing to higher vacancy rate in 2021.

Representative Investment Sale Transactions (2021)

Address

Type

$ MM

RBA SF Date

Buyer

1800 Owens St

Conversion

$1,081.1

736,000 Mar 2021

KKR & Co

3100 San Pablo Ave

Lab

$172.7

457,000 Apr 2021

Oxford Properties Group

2001 Junipero Serra Blvd

Conversion

$168.6

384,954 May 2021

Phase 3 Real Estate Partners

Life Sciences Talent Pool

Representative Life Sciences Companies

301-501 Island Pkwy

Conversion

$160.0

227,507 Aug 2021

BioMed Realty

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

2929 & 2925 Campus Dr

Conversion

$119.7

231,686 Jun 2021

Tarlton Properties

Company

Type

1501-1599 Industrial Rd

R&D

$112.0

105,679 Jun 2021

Alexandria Real Estate

Gilead Sciences

HQ (Foster City)

38,000

Harbor Bay Pkwy

Lab

$101.3

335,124 May 2021

Invesco

BioMarin Pharmaceutical

HQ (San Rafael)

1310 Harbor Bay Pkwy

Lab

$87.0

135,000 Aug 2021

Nome Ventures

34,000

Amgen

HQ (South San Francisco)

31,142

6550 Dumbarton Cir

Lab

$72.2

99,000 Dec 2021

DivcoWest

Regional Office (South San Francisco)

5301 Patrick Henry Dr

Lab

$68.0

117,500 Feb 2021

Hines Global Income Trust

Genentech

30,000

Bayer

Regional Office (Berkeley)

Representative Lease Transactions (2021)

26,000

Exelixis

HQ (Alameda)

Company

Address

Size (SF)

New/Renewal

Type

Quarter

Landlord

Average Annual Growth Rate 2001-2021: 2.0%

Number of Persons

22,000

Zymergen

HQ (Emeryville)

Freenome

3000-3300 Marina Blvd

335,419

New

Direct

Q3

Phase 3 Real Estate Partners

Regional Office (South San Francisco)

Fibrogen

409 Illinois Street

239,000

Renewal

Direct

Q3

Alexandria Real Estate

Abbvie

18,000

Altos Labs

Redwood LIFE

232,987

New

Direct

Q3

Longfellow / PGIM

Illumina

Regional Office (Foster City)

Genentech

751 Gateway Blvd S

230,000

New

Direct

Q4

Alexandria Real Estate

2011

2017

2021

2012

2015

2013

2018

2019

2016

2014

2010

2001

2007

2020

2002

2005

2003

2008

2009

2006

2004

Bristol Myers Squibb HQ (Redwood City & Brisbane)

Sana Biotechnology

5567 Cushing Pkwy

164,939

New

Direct

Q3

Overton Moore Properties

Bio Degree-Awarding Institutions, Metro Area • Stanford University • University of San Francisco • University of California Berkeley • Gladstone Institute • Lawrence Livermore Labs • Lawrence Berkeley National Labs • University of California, San Francisco

Impossible Foods

1500 Seaport Blvd

164,732

New

Direct

Q4

Google

Top NIH-Funded Institutions (2017-2021) $3.3B University of California, San Francisco $2.7B Stanford University $697M University of California Berkeley

Smart Labs

750 Gateway Blvd

145,192

New

Direct

Q2

Biomed Realty Trust

Natera

201 Industrial Rd

136,000

Renewal

Direct

Q1

Biomed Realty Trust

Vir Biotechnology

1800 Owens St

133,896

Direct

Direct

Q4

Longfellow/KKR

Arcus Biosciences

1800 Sierra Point Pkwy

105,562

New

Direct

Q1

Healthpeak

Research Contributors Jason Karbelk jason.karbelk@cushwake.com

Robert Sammons robert.sammons@cushwake.com

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

19 / CUSHMAN & WAKEFIELD

LIFE SCIENCES 2022 MARCH UPDATE