2022 March Life Sciences Update

Funding Remains Strong

Top Markets in NIH Funding for the Previous Five Years (2017-2021)

Boston

$14.2B

New York City

NIH Funding Down in 2021 by 4.1% Total Annual U.S. NIH Funding over Time

Half of NIH Funding Goes to 10 Markets Share of Annual NIH Funding in Top 10 Markets

$11.3B

San Francisco Bay Area Baltimore / Suburban MD (I-270)

$9.0B

$40

NIH Funding - U.S.

$20

52%

$35.0

$35

$8.5B

$16

50%

Raleigh / Durham

$30

$33.5

$7.3B

$25

$12

48%

Seattle

$5.9B

$20

Billions

Los Angeles

$8

46%

Billions

$15

$5.8B

Average Annual Growth Rate 1995-2021: +5.5% 2016-2021: +6.2%

Philadelphia

$4

44%

$10

$5.5B

$5

San Diego

$0

42%

$4.9B

$0

Chicago

Funding in Top 10 Markets

Share of U.S. Funding (rhs)

$4.4B

Houston

Source: U.S. National Institutes of Health, Cushman & Wakefield Research

Source: U.S. National Institutes of Health, Cushman & Wakefield Research

$3.7B

Pittsburgh

$3.2B

Even though total U.S. NIH funding declined by 4.1% YoY in 2021, it was the second highest year on record (7.8% above 2019). In fact, even with the decline, the growth in funding over the past five years has averaged +6.2% per year, which is faster than the 26 year average dating back to 1995 (+5.5%). The downward trend is likely attributed to a one-year blip—the NIH’s 2022 budget request included an increase of $9 billion in total program spending, of which over 80% is “awarded for extramural research.”

Half of NIH funding in the U.S. is allocated to the top 10 markets led by Boston, New York City and the San Francisco Bay Area. Over the past five years, the NIH distributed $76.8 billion to organizations located in just 10 U.S. markets. These are also the cities with the fastest growing life sciences labor pools and the most dynamic lab real estate markets.

Ann Arbor

$3.0B

St. Louis

$2.8B

Atlanta

$2.6B

Source: U.S. National Institutes of Health, Cushman & Wakefield Research

4 / CUSHMAN & WAKEFIELD

LIFE SCIENCES 2022 MARCH UPDATE