2023 March Life Sciences Update

Robust Construction Pipeline

In the U.S., close to 25.5 msf is due to be delivered in the next two years, comprising 79% of the total construction pipeline. Nearly half of those completions will be located in Boston, where an estimated 10 msf of new inventory is due to be completed by 2024, and only 32%—or 3.2 msf—is currently pre-leased. Boston’s life sciences labor pool is forecasted to grow nearly 20% through 2026. This is the strongest growth forecast among the 15 markets tracked pointing to strong demand for space in Boston.

Across all markets, Boston has the largest construction pipeline with 14.1 msf of new space under construction, comprising 40% of Boston’s current lab space inventory. After Boston, the largest construction pipelines are in San Francisco (6.6 msf), San Diego (4.7 msf), Raleigh-Durham (2.2 msf) and Seattle (1.4 msf). In the UK, total lab inventory is expected to grow 27%, with a total of 1.9 msf of new space currently under construction.

Lab Space: Current Inventory & Under Construction

Under Construction Space & Projected Growth in Labor Pool

25%

60

50%

Currently, 31.9 msf of lab space under construction in the US markets and 1.9 msf in the UK markets.

50

20%

40%

Boston

SF Bay Area

40

30%

Raleigh-Durham

15%

30

Suburban MD

20%

10%

20

MSF

DC Metro

New Jersey

10%

10

Oxford

Philadelphia

Seattle Cambridge (UK)

5%

0

0%

San Diego

0%

LA-Orange County Forecasted Labor Growth (2022-2026)

Chicago

-5%

0%

10%

20%

30%

40%

50%

Current Inventory Under Construction U/C as % of Inventory

Under Construction as % of Current Inventory

Source: Cushman & Wakefield Research

Source: Lightcast, Cushman & Wakefield Research

6 / CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2023 MARCH