Life Sciences Update | 2022 October

Real Estate Fundamentals Remain Strong

Projected Growth, Lab Inventory Current Inventory & Under Construction

New Construction Pipeline, Next 18 Months Expected Construction Completions, U.S. markets, 2022-2023

Pre-leased

Available

Current Inventory

Under Construction

U/C as % of Inventory

100%

50%

60

0.2

90%

0.1

50

80%

40%

0.6

0.2

4.0

70%

40

30%

3.1

2.6

60%

30

50%

0.6

2.1

MSF

20%

Completions (MSF)

20

1.0

40%

0.2

10%

10

30%

0.7

0.2

2.7

20%

0

0%

1.0

0.7

10%

0%

Boston Chicago Denver New York Philadelphia Raleigh San Diego San Francisco

Seattle

Source: Cushman & Wakefield Research

Source: Cushman & Wakefield Research

Current projects under construction in the U.S. are expected to add an additional 26.6 million square feet (msf) of lab space to existing inventory. Boston has the largest construction pipeline with 13.9 msf of new space under construction, which comprises 43% of Boston’s current lab space inventory. After Boston, the largest construction pipelines are in San Diego (3.7 msf), San Francisco (3.5 msf), Seattle (1.5 msf) and Los Angeles (1.4 msf). In the UK, lab inventory is expected to grow 50% with a total of 3.6 msf of new space under construction.

In the U.S., there are approximately 19.9 msf of near-term deliveries scheduled for 2022-2023, or 74% of the current construction pipeline. For projects due to be completed in 2022, 60% of the space is pre-leased. In Boston, an estimated 6.7 msf of new inventory is due to be completed by 2023, with 2.7 msf currently pre-leased. Life sciences leasing activity in the U.S. markets totaled 7.2 msf for the first half of 2022. The average deal size in Q2 was 74,000 sf. The top three markets with the highest leasing volume in the first half were San Diego (2.2 msf), Boston (1.8 msf), and the San Francisco Bay area (1.2 msf).

5 / CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2022 OCTOBER