2022 March Life Sciences Update

Suburban Maryland (I-270 Corridor)

Market Summary • The I-270 Corridor is home to one of the nation’s most critical life sciences clusters. Suburban Maryland, also known as the I-270 Life Sciences Corridor, home to the National Institutes of Health, a top education system, and VC funding that has increased four-fold since 2018. R&D opportunities are at an all-time high in this region. • Investors are continuing to recognize the Suburban Maryland (I-270 Corridor) as an established life sciences market with robust demand along the I-270 corridor throughout several prominent lab clusters. With the continued demand and low vacancy, developers are hungry for land and several conversions throughout Montgomery and Frederick counties are underway. • Leasing volume is up YoY and Suburban Maryland is priced at a competitive rate. • The I-270 Life Sciences Corridor continues to remain a top cluster in the nation due to strong government and VC funding, a strong workforce, and a market that offers an overall good quality of life. • When accounting for federally owned and leased life sciences operations of the National Institutes of Health and other agencies, the total square footage of Life Sciences in the I-270 Corridor totals over 25 MSF.

Public & Private Funding (2021)

Rent vs. Vacancy Comparison

Fast Lab Stats 25.3 MSF Market Square Footage $38.75

Company

Deal Type

Completed Type

$ Raised (MM)

$50

10%

Sensei Biotherapeutics

IPO

Feb 2021

Public

133.0

$40

8%

Cellular Biomedicine Group Early Stage

Sep 2021

VC

120.0

Arcellx

Later Stage

Apr 2021

VC

115.0

$30

6%

Vacancy Rate

NexImmune

IPO

Feb 2021

Public

110.1

Sirnaomics

Later Stage

Jul 2021

VC

105.0

$20

4%

$ Per SF 1.7% Vacancy 31.4K Total Life Sciences Employment & Talent Pool 136% Life Sciences Employment Growth Rate Since 2001

NeoImmuneTech

IPO

Mar 2021

Public

100.3

$10

2%

ValenzaBio

Early Stage

Apr 2021

VC

79.4

Average Asking Rent $/sf

Immunomic Therapeutics

Later Stage

Jan 2021

VC

77.7

$0

0%

Somatus

Later Stage

Jun 2021

VC

60.1

2015 2016 2017 2018 2019 2020 2021

MANA Therapeutics

Early Stage

Nov 2021

VC

49.5

Asking Rents

Vacancy Rate

Representative Investment Sale Transactions (2021)

Address

Type

$ MM

RBA SF Date

Buyer

2,4, Choke Cherry Rd, 2092 Gaither Rd, 15825 Shady Grove Rd Office/Flex

$116.7

435,000 Aug 2021

Boston Properties

9601-9603 Medical Center Dr

Office

(Portfolio Sale) $80.5

94,789 May 2021

Alexandria Real Estate Equities

9900 & 9901 Belward Campus Dr

Office

(Portfolio Sale) $50.0

106,857 Sep 2021

Ares Management

Life Sciences Talent Pool

Representative Life Sciences Companies

20,30,50 W Gude

Flex

$46.0

231,582 Dec 2021

Thor Equities

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

Company

Type

9615 Medical Center Dr

Flex

$40.3

65,600 May 2021

USAA

AstraZeneca

Research Facility

24,000

7135 English Muffin Way

Flex

$23.9

63,054 Aug 2021

Oxford

21,715

GlaxoSmithKline

Research Facility

20420,20430 & 20440 Century Blvd

Office/Flex

$22.0

121,000 Oct 2021

Rock Creek

22,000

12712 Rockcreek & 5609 Fishers

Flex

$13.4

171,686 Dec 2021

Crystal Rock Development

Regenxbio

HQ

20,000

4539 Metropolitan Ct

Flex

$3.2

32,400 Oct 2021

FH Properties

ThermoFisher Scientific

Regional Office

Supernus

HQ

18,000

Representative Lease Transactions (2021)

Qiagen

U.S. HQ

16,000

Company

Address

Size (SF)

New/Renewal

Type

Quarter

Landlord

BioReliance

HQ

14,000 Number of Persons

Average Annual Growth Rate 2001-2021: 1.8%

Horizon Therapeutics

Traville Gateway

192,000

New

Lab

Q4

Alexandria RE Equities

National Institutes of Health HQ

TCR2 Therapeutics Inc.

9950 Medical Center Dr

84,264

Direct

Lab

Q1

Alexandria RE Equities

12,000

Food & Drug Administration HQ

Novavax

Seneca Meadows Building 6

65,000

Sublease to Prime Flex

Q4

Minkoff

Novavax

HQ

10,000

MaxCyte Inc

9713 Key West Ave

53,904

Direct

Office

Q2

Beckham Gumbin Ventures

Sirnaomics

20511 Seneca Meadows Pky

43,000

New

Lab

Q3

Minkoff Development

2011

2017

2012

2021

2015

2013

2018

2016

2019

2014

2010

2001

2007

2020

2002

2005

2003

2008

2009

2006

2004

Top NIH-Funded Institutions (2017-2021) $3.7B Johns Hopkins University $1.2B University System of Maryland $22M Institute for Bioscience and Biotechnology Research

Innovent

9900 Belward Campus Dr

30,228

Direct

Office

Q3

Ares Management

Reopen Diagnostics

9605 Medical Center Dr

14,709

Direct

Office

Q1

Alexandria RE Equities

Includes 10.5 MSF Private Sector Lab and 14.8 MSF of Government Leased and Owned Properties

Bio Degree-Awarding Institutions, Metro Area • Johns Hopkins University • Montgomery College • University of Maryland - Institute for Bioscience & Biotechnology Research

Research Contributors Nathan Edwards nathan.edwards@cushwake.com

Lauren Kraemer lauren.kraemer@cushwake.com

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

20 / CUSHMAN & WAKEFIELD

LIFE SCIENCES 2022 MARCH UPDATE