Life Sciences Update | 2022 October

Real Estate Fundamentals Remain Strong

Life Sciences: Asking Rents, Q2 2022 Current Rent & 7-Year Growth

Life Sciences: Vacancy Rate, Q2 2022 Total Vacancy Rates by Components

Direct Vacancy

Sublease Vacancy

Rent

Rent Change 2015-2022 (rhs)

120%

$120

New York City Chicago Denver Raleigh/Durham New Jersey San Francisco Bay Area Boston San Diego Philadelphia Seattle Suburban Maryland Oxford Los Angeles London Cambridge

0.3%

1.5%

100%

$100

2.0% 1.8%

80%

$80

4%

60%

$60

4%

5%

40%

$40

6%

20%

$20

9%

11%

0%

$0

12%

13%

16%

28%

32%

0%

10%

20%

30%

40%

* UK rents adjusted to reflect occupier costs of office-to-lab conversion

Source: Cushman & Wakefield Research

Source: Cushman & Wakefield Research

Although rents have continued to grow in Q2 2022 in several markets from year-end, including double digit growth in Oxford (+16.1%), London (26.8%), Seattle (+27.2%) and San Diego (+31.3%), a few markets experienced some softening with four markets seeing asking rents fall from year end levels: Boston (-4.5%), San Francisco Bay area (-3.3%), Cambridge, UK (-1.8%) and New Jersey (-1.2%). Despite this two-quarter decline, rents are currently higher than year-end 2019 pre pandemic levels, up 13.1% in Boston, 30.4% in the San Francisco Bay area, 31% in Cambridge and 2.5% in New Jersey. Vacancy rates remain low in most markets, with rates below 10% in all three UK markets— Cambridge (0.3%), London (1.5%) and Oxford (2%)—and six U.S. markets, including Los Angeles

(1.8%), Suburban Maryland (3.5%), Seattle (3.8%), Philadelphia (5%), San Diego (5.7%) and Boston (9.1%). Vacancy rates increased slightly in the first half of 2022 in five of the 12 U.S. markets as some vacant sublease space has entered the market. U.S. vacant sublease inventory increased 37% from year-end 2021 levels. This number is likely to increase as more vacant sublease space has entered the market during recent months. Current sublease space, however, accounts for just 1% of total inventory in the U.S. This is slightly higher for markets with more vacant sublease space but not by much: the San Francisco Bay area (4%) and Raleigh / Durham (4%).

4 / CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2022 OCTOBER