2023 March Life Sciences Update

Emerging Markets - Americas Emerging life sciences markets share several characteristics that underly their momentum, including existing life sciences real estate and the development pipeline, the life sciences education ecosystem, the number of industry-related graduates, past attraction of public and private funding and growth in life sciences employment. The markets covered in this section—Atlanta, Phoenix, Austin, Dallas-Ft. Worth, Houston, Salt Lake City and Costa Rica—share these characteristics and are poised for continued growth in the life sciences industry. • Venture capital funding flowed into emerging Texas markets at a healthy rate, with Austin attracting $345 million, Dallas-Ft. Worth capturing $151 million and Houston bringing in $137 million in 2022. • Federal funds have historically flowed to these emerging markets as NIH awards, totaling billions, were awarded to institutions in emerging markets. Within the last five years, Atlanta was awarded $2.3 billion in funding for Emory University, while Houston’s Baylor College of Medicine received $1.6 billion and the Dallas-Ft. Worth Metroplex was awarded $1.2 billion for the University of Texas Southwestern Medical Center. • Houston’s life sciences employment was highest among the Americas’ emerging markets, with its 22,365 employees rivaling that of more established secondary markets. In terms of growth, Atlanta boasted an 111% gain in life sciences employment over the last 10 years, while the second-fastest growing emerging market, Salt Lake City, saw 70% growth over the same period. In comparison, hub markets averaged a 35% increase in life sciences employment from 2013 to 2022, while secondary markets averaged 18% growth. • The number of bio-degrees earned over the last 10 years increased in every emerging market in the Americas. Increases from 2012-2021 for emerging markets range from 105% in Austin to 28% in Salt Lake City. Hub markets saw the number of graduates increase by 37% over the same period, while secondary markets saw degrees increase by 45%. • Costa Rica, the epicenter of medtech manufacturing in the Americas, boasts over 16.7 msf dedicated to the industry, with an additional 4.3 msf (representing 26% of existing inventory) in the development pipeline. Salt Lake City and Atlanta will both see inventory gains above 20%, should all projects in their respective pipelines come to life.

Public & Private Fund Attraction, Top 10 Deals

High Growth in Employment

111%

0% 20% 40% 60% 80% 100% 120%

25,000

Austin

$344.53

20,000

70%

Salt Lake City Dallas/Ft. Worth

$150.61

15,000

50%

40% 38%

10,000

$131.01

24%

5,000

Houston

$137.32

0

Atlanta

$88.43

Phoenix

$51.46

# Employees (2022) 10 Yr Growth Rate Hub Market 10 yr Growth Rate Secondary Market 10 yr Growth Rate

Millions (USD)

Growth in Bio-Degree Awards Source: Pitchbook, Inc. *Data has not been reviewed by PitchBook analysts

Source: Lightcast

A Growing Inventory

0% 20% 40% 60% 80% 100% 120% 140% 160%

1 2 3 4 5 6 7

141%

0% 20% 40% 60% 80% 100% 120%

0 1,000 2,000 3,000 4,000 5,000 6,000

105%

90%

80%

69%

78%

50%

MSF

22%

21%

12% 13%

28%

-

Degrees Awarded (2012) Degrees Awarded (2021) 10 Yr Growth Rate Hub Market 10 yr Growth Rate Secondary Market 10 yr Growth Rate

Proposed Under Construction Existing % of Existing Inventory U/C & Proposed

Source: Lightcast

Source: Cushman & Wakefield Research

39 / CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2023 MARCH