2023 September Life Sciences Update

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Drivers of Future Growth

03 07 14 19 24 28

Fundamentals

Labor

Funding

Clinical Trials

Emerging Markets

Recent headwinds faced by life sciences belie the long-term tailwinds that will continue to drive the sector through the next decade of research and innovation. Although growth may slow from pandemic highs, long-term growth will be fueled by underlying fundamentals that were propelling the sector prior to the pandemic.

LIFE SCIENCES SEPTEMBER 2023

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Drugs and Therapies Aimed at an Aging Population Will Drive Life Sciences Innovation

› Globally, the proportion of adults aged 65 and older is growing at a faster rate than other age groups. The current population of 65 and older grew 27% since 2015 and is forecast to grow an additional 25% through 2030. › Currently, there are over 400 medicines and therapies in development aimed at targeting chronic diseases impacting older Americans, according to PhRMA. Additionally, there are also over 800 active clinical trials focused on aging according to the National Institutes of Health (NIH) database.

Global Population by Age Group

Ages 0-14 Ages 15-64 Ages 65 and greater

2000

27%

66%

2005

25%

67%

2010

23%

68%

Key Takeaway: Underlying demographic needs will continue to drive long-term growth in life sciences.

2015

23%

68%

10%

2020

22%

67%

11%

2023 Q2

21%

67%

12%

2025 Forecast

20%

67%

12%

2030 Forecast

19%

67%

14%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: Moody’s Analytics

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LIFE SCIENCES SEPTEMBER 2023

Onshoring of Biomanufacturing Can Be a Catalyst for Growth in the U.S.

Most Biologics and APIs are Developed in the U.S. but Manufactured Abroad

› Pandemic-related drug shortages highlighted vulnerabilities in the supply chain. Recent drug shortages have greatly impacted patients across the country and underscore the need for increased biomanufacturing capacity in the U.S. › According to a 2019 FDA report, only 28% of active pharmaceutical ingredients (API) manufactured for the U.S. market were made in the U.S. Incentivizing domestic production of APIs is a goal of the FDA. › In September 2022, the U.S. government launched a National Biotechnology and Biomanufacturing* Initiative aimed at ensuring that biotechnology products invented in the U.S. are manufactured in the country. Unless existing hurdles are mitigated, onshoring will be challenging. These hurdles include labor availability and costs; raw materials availability and costs; and operational costs and infrastructure. › Nearshoring can be an answer to costly onshoring, bringing the supply chain closer to home. However, challenges include transparency, skilled labor and infrastructure. Key Takeaway: Onshoring biomanufacturing presents growth opportunities and increases supply chain resiliency, but hurdles need to be addressed.

Number of New Chemical or Biological Entities Developed

API Manufacturing Facilities for All Drugs

100%

Canada, 2%

Rest of World, 35

Rest of World, 17

Rest of World, 39

Rest of World, 13%

90%

Japan, 46

Japan, 26

China, 13%

80%

Japan, 30

China, 50

70%

India, 18%

60%

Europe, 55

Europe, 77

Europe, 74

50%

Europe, 26%

40%

30%

United States, 159

United States, 100

United States, 65

20%

United States, 28%

10%

2008-2012

2013-2017

2018-2022

VIEW OUR U.S. MANUFACTURING RESURGENCE REPORT

Source: Federal Drug Administration (FDA), Statista

*Biomanufacturing includes biologicals, APIs, industrials

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LIFE SCIENCES SEPTEMBER 2023

Rent Growth Remains, but Pockets of Softness Emerge

› Asking rents for lab and cGMP space have steadily increased over the last three years, growing an average of 37% across these 15 markets. › On a year-over-year (YoY) basis, rent growth has decelerated, growing an average of 9% across the 15 markets. › Although growth slowed, eight of the 15 markets still experienced double-digit rent growth YoY, with the highest growth in Oxford (+25%), Suburban Maryland (+22%) and New Jersey (+21%) . › Rents declined in four of the 15 markets: Seattle (-20%); Los Angeles-Orange County (-3%); Philadelphia (-2%); and Denver (-1%). Key Takeaway: A significant amount of new space is expected to enter the market in the next 18 months. This high-quality space will continue to push asking rents higher across most markets.

Current Overall Asking Rents

Current Rent

3-Year Rent Change 2020-2023 (rhs)

YoY Rent Change (rhs)

$160

120%

$140

100%

$120

80%

$100

60%

$80

40%

$60

20%

$40

$20

-20%

-40%

* Rents adjusted to reflect occupier costs of office to lab conversion

Source: Cushman & Wakefield Research

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LIFE SCIENCES SEPTEMBER 2023

Uptick in Vacant Space Shifts the Sector into a Tenant Market

› Vacant space has steadily increased over the last 12 months. Overall vacant space averaged 8.4% during the pandemic period of 2020 to 2021; it now averages 11% across C&W markets, well below the overall U.S. office space vacancy rate of 19.2%. › The increase in vacant sublease space has applied upward pressure to the vacancy rate. On a YoY basis, total vacant sublease space grew from 1.6 million square feet (msf) to 5.1 msf. › A C&W analysis of subleases from 2020 to 2023 showed that newer Class A space leases faster than older Class B and C space by over a month; meaning that newer sublease space doesn’t last as long on the market. › A robust construction pipeline may contribute to the market’s vacant inventory, as much of the current pipeline is expected to deliver vacant. › The first half of 2023 has seen absorption turn negative in most markets following a long-term positive absorption trend Key Takeaway: The current tenant favorable market gives occupiers more options as they plan their space needs. However, strong underlying fundamentals mean this market opportunity will not last long.

Total Vacancy Rates by Components

Direct Vacancy

Sublease Vacancy

Average

35%

30.3%

30%

26.0%

25%

22.8%

20%

14.4%

15%

11.8% 9.8%

9.5%

11.0%

8.2% 8.1%

10%

7.2%

5.0%

4.1%

3.2%

0.5% 0.3%

Source: Cushman & Wakefield Research

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LIFE SCIENCES SEPTEMBER 2023

Inventory Growth has Tried to Keep Pace with Demand

› Life sciences inventory raced to keep pace with demand over the last three years, growing 18% since 2020. › Likewise, the construction pipeline has more than doubled since 2020, growing from 16 msf to its current 38 msf under construction. › Among the 15 markets, Boston has the most robust construction pipeline with nearly 15 msf of projects under construction. With the pipeline accounting for 42% of current inventory, Boston’s total inventory will grow significantly as projects are completed in the next few years. › The largest market by square footage is currently the San Francisco Bay Area. Inventory is expected to grow an additional 17%, with current projects under construction totaling nearly 8 msf. Key Takeaway: Employment-fueled growth has driven inventory and construction activity. As the market recalibrates, the construction pipeline may begin to slow in some markets.

Current Inventory and Under Construction

Current Inventory

Under Construction

U/C as % of Inventory

60%

50%

40%

30%

MSF

20%

10%

Source: Cushman & Wakefield Research

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LIFE SCIENCES SEPTEMBER 2023

The robust life sciences construction pipeline is a result of strong employment growth in the sector. As job growth slows the construction pipeline is likewise expected to slow.

LIFE SCIENCES MARCH 2023

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U.S. Life Sciences Job Growth Fuels Inventory Growth

› Employment has been the key driver of inventory growth in the U.S. Life sciences employment continued to grow through the pandemic, with only one month of job losses: April 2020 declined by 0.1%. › Annual life sciences job growth has averaged 8.8% on a four-quarter rolling basis from Q1 2020 to Q2 2023, outpacing total employment growth of 0.9% over the same period. Additionally, life sciences employment growth has outpaced other high-growth employment sectors, including high tech (2.9%) and industrial (3.3%) over the same period. › Annual inventory growth has averaged 5% over the period of 2020 to 2023, trailing life sciences employment growth.

U.S. Life Sciences Job and Inventory Growth

Inventory

Employment - R&D in Biotechnology (RHS)

300

250

200

150

Inventory ( MSF)

100

Key Takeaway: Research & Development employment has outpaced the broader job market but is slowing down. Look for a reacceleration when overall employment starts to grow again.

Employment (In Thousands)

2015

2016

2017

2018

2019

2020

2021

2022 Q2 2023

Source: U.S. Bureau of Labor Statistics, Cushman & Wakefield Research

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LIFE SCIENCES SEPTEMBER 2023

Completions Will Lead to an Inventory Increase of 14% in the Next 18 Months

› As inventory races to catch up to employment growth, nearly 28 msf of new inventory is expected to be completed in the next 18 months, including new construction and conversions. › Of these expected construction completions, approximately 27% is currently pre-leased across several markets. The remaining 73% will either deliver vacant or be absorbed by current tenants in the market (TIM). › Boston is expected to add the greatest amount of new space in the next 18 months — 12 msf, which represents over 80% of its total construction pipeline.

Expected Construction Completions, U.S. Markets, 2023-2024

Pre-leased

Available

100%

90%

80%

0.7

70%

7.7

0.7

0.4

3.3

60%

0.7

4.4

1.4

50%

1.0

40%

Key Takeaway: An influx of vacant new space will provide unique opportunities for occupiers in many markets.

30%

0.5

20% Under Construction ( MSF)

4.4

0.3

0.1

1.2

10%

0.1

0.8

Source: Cushman & Wakefield Research

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LIFE SCIENCES SEPTEMBER 2023 LIF S IENC S MARCH

Markets with Robust Construction Pipelines Expect Strong Employment Growth

› Like overall market trends, employment growth has been the main driver in construction activity in each market. › The three markets with the largest construction pipelines — Boston, San Diego and the San Francisco Bay Area — also have some of the strongest expected employment growth. › Through 2026, Boston’s life sciences talent pool is expected to grow an additional 20%. The current inventory-to-talent ratio for Boston is 325 sf per employee. The employment forecast means that at least 7 msf is needed to accommodate new talent in Boston. The nearly 8 msf of available new construction should readily accommodate this growth through 2026. › The San Francisco Bay Area has a higher inventory-to talent ratio of 492 sf per employee. Based on this ratio, an additional 7 msf will be needed to accommodate employment growth of 15%. Key Takeaway: Strong life sciences employment growth in the next three years should provide the demand to absorb a significant portion of the current vacant space and upcoming construction completions.

Projected Growth in Labor Pool and Lab Inventory

25%

Boston

20%

Seattle

SF Bay Area

15%

San Diego

Los Angeles-Orange County Denver

10%

Raleigh-Durham

DC Metro

New York City

Philadelphia

Forecasted Labor Growth (2022-2026)

New Jersey

Chicago

Off Chart London : 115%UC; 10.3% Labor Oxford : 72% UC; 9.9% Labor

Cambridge (UK)

-5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Under Construction as % of Current Inventory

Source: Lightcast, Cushman & Wakefield Research

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LIFE SCIENCES SEPTEMBER 2023

Hub and Secondary Markets Have the Largest Employment Base

› The top 10 employment markets account for 69% of U.S. life sciences employment. › As defined by Cushman & Wakefield, a hub market typically contains a large employment base and significant lab and cGMP inventory. Of the six hub markets, five are in the top 10. The rest of the top 10 markets are rounded out by secondary markets and one emerging market, Ann Arbor/Detroit. › Life sciences employment growth has been robust in all markets in the last five years. Notably, emerging markets

Life Sciences Total Employment by Market (MSA), 2023

Emerging Secondary

Hub

Raleigh/Durham Detroit/Ann Arbor Chicago Suburban Maryland Los Angeles-Orange County Philadelphia San Diego New Jersey San Francisco New York Boston

experience the strongest growth (24%), followed by secondary markets (20%) and hub markets (18%).

› Looking forward, the employment forecast calls for growth to decelerate over the next five years but remain positive. Hub markets are forecast to grow 7%, followed by emerging markets at 4% and secondary markets at 2%.

Houston Toronto

London Denver Austin Phoenix Atlanta Salt Lake City Oxford Vancouver Dallas Cambridge (UK) Montréal Seattle

Key Takeaway: Major life science employment hubs will continue to be drivers of life sciences/lab real estate. Watch for large secondary markets (e.g., New York, Los Angeles and Chicago) to also be life science growth spots in the coming years.

0 10 20 30 40 50 60 70 80 90 100 110 120

Thousands

Source: Lightcast

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LIFE SCIENCES SEPTEMBER 2023

An easing in the labor market may provide much needed relief to a sector that has struggled to fill many positions since the pandemic began.

LIFE SCIENCES SEPTEMBER 2023

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Is the U.S. Life Sciences Labor Crunch Easing?

› A cooling economy has led to a deceleration in both hiring and job postings in the first half of 2023, as some companies recalibrate their plans. › Despite the recent slowdown, postings continue to outpace hirings on a year-to-date (YTD) basis. As of August 2023, postings outpaced hiring by 14%; however, this is lower than the same period last year when postings outpaced hiring by 34%. › Current job postings have a 3-to-1 intensity ratio, meaning that each unique job is posted an average of three times, indicating some continued difficulty in filling open positions. › The number of students completing life sciences degrees has grown 6% from 2019 to 2021. While not all these degrees will lead to a career in the sector, it provides a larger pool of skilled talent. Key Takeaway: Contrasting life sciences with the overall labor market highlights the challenges in filling positions that are very specific to the sector. The ratio of hires to postings is currently three hires-to-one job posting (3:1) for the overall labor market. This ratio is closer to 1:1 in life sciences where postings outpace hiring.

U.S. Life Sciences Job Postings Decline After Post- Pandemic Peak

Avg Monthly Hires

Avg Monthly Postings

Annual Completions

265

Entering the job market

260

255

250

245

240

235

Life Sciences Degree Completions (Thousands)

230

Monthly Hires and Postings (Thousands)

225

Source: Lightcast

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LIFE SCIENCES SEPTEMBER 2023

Global Funding Reverting to Pre-Pandemic Levels

› Global life sciences funding, including VC and IPOs, totaled $29.2 billion through the first half of 2023, a 26% drop from the first half of 2022. › VC activity levels fell 30% globally, totaling $24.2 billion. Most VC deal volume was focused on North American deals (53%), with APAC capturing 33% and Europe 13%. › Nine of the top 10 global deals were transacted in the U.S. and totaled $2.2 billion in aggregate value, with an average check size of $248 million. The largest deal of the year was the $401 million fourth-round funding of Waltham, Massachusetts-headquartered ElevateBio. › The only non-U.S. company in the top 10 is GenScript ProBio. Headquartered in Nanjing, China, the company raised $224 million in a third round of funding. › IPO activity, although falling significantly short of 2021 peak levels, totaled $5 billion globally in the first half of 2023, up 2%. Most of that growth originated in the U.S. due to the $2 billion GE Healthcare IPO. Key Takeaway: As the sector recalibrates, some of the dry powder sitting on the sidelines will need to be deployed and return to the market.

Venture Capital

Public Offerings

North America Europe APAC

$40

$100

$35

$90

$80

$30

$70

$25

$60

$20

$50

Billions

$40

$15

$30

$10

$20

$10

Source: PitchBook Data, Inc.; *Data has not been reviewed by PitchBook analysts. 2022 as of June 30, 2022

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LIFE SCIENCES SEPTEMBER 2023

U.S. Drop in VC Funding is Supplemented by Growing NIH Funding

› U.S. government funding focused on research and development continues to increase amid a challenging VC funding environment. Combined funding for 2023 is expected to outpace pre-pandemic years. › Higher funding commitments by the federal government to the NIH have resulted in increased funding, which grew 31% over the last five years (2018-2023), a stronger rate of growth when compared to the 17% growth of the previous five-year period (2012-2016). › The bulk of NIH funding is allocated to the public sector, including hospitals, research institutes and research universities. Of the $21.7 billion awarded in the first half of 2023, the top 10 recipients received $4.4 billion, or 20%. Nine of the top 10 recipients were universities, except for Massachusetts General Hospital, which was the only non university recipient. › NIH allocations to for-profit companies have averaged 7% since 2010. In 2022, funding to for-profits totaled $3 billion, up 61% from the $1.8 billion 2018 allocation. Key Takeaway: Although NIH funding is not a major source of funding to for-profit companies, the $1.4 billion allocated so far in 2023 provides an additional source of funding to supplement the $12.9 billion in VC funding.

Total Annual U.S. Funding Over Time

NIH VC

$90

$80

$70

$60

$50

$40

Billions

$30

$20

$10

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H 2023

Source: U.S. National Institutes of Health, Cushman & Wakefield Research, 2022 as of June 30, 2022

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LIFE SCIENCES SEPTEMBER 2023

Despite Share Price Volatility, 2022 Biotech Revenues Were at Peak Levels

› Biotech, one of the fastest growing segments in life sciences is an indicator of growth for the sector. › The run-up in biotech pricing through 2021 added a significant amount of liquidity to the life sciences sector. However, the steep fall in prices through midyear 2022 put a lot of biotech companies in a cash crunch. › Pricing is currently above pre-pandemic levels, demonstrating continued pricing growth. However, pricing is lagging the three-year average and significantly behind the linear trendline, leaving room in the market for price growth. › Public biotech revenue has ballooned to over $167 billion in 2022, with an impressive annual growth rate of 12%. › Commercial leaders dominate revenue and on average account for 83% of total annual revenue over the last 22 years. › In 2022, commercial leader revenue share increased to 89% with a YoY growth of 3%. Although emerging leaders have gained revenue share, growth dropped 20% YoY as smaller companies struggled.

Markets Saw Less Price Volatility in 2023

U.S. Public Biotech Company Revenues, 2000-2022

180

6000

160

5000

140

Biotech Share Prices Are at Five-Year Average

4000

120

100

3000

2000

Revenue ($billions)

1000

Biotech - Share price, (Index 1-Nov-1993=200, NSA)

Key Takeaway: Headwinds increased uncertainty in the biotech sector, but underlying fundamentals continue to fuel growth.

1/4/2010

1/4/2011

1/4/2012

1/4/2013

1/4/2014

1/4/2015

1/4/2016

1/4/2017

1/4/2018

1/4/2019

1/4/2020

1/4/2021

1/4/2022

1/4/2023

Daily

3 Year Avg 10 Year Avg

US commercial leaders US emerging leaders

5 Year Avg

Linear (Daily)

Source: EY analysis 2023, Cushman and Wakefield Research Note: Commercial leaders are companies with revenues at or above $500 million

Source: The Nasdaq Stock Market, Inc. (NASDAQ), Cushman & Wakefield Research

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LIFE SCIENCES SEPTEMBER 2023

Various Funding Sources Drive Clinical Trials in the U.S.

› Despite a decidedly slow VC funding environment, clinical trials continue to be initiated as the life sciences sector continues to build on underlying drivers of growth. › While not all this funding is focused solely on clinical trials, there is a clear relationship between the number of clinical trials and total funding in the market. › Much of the research and development funded by these three major sources has the potential to move into clinical trial stages. › Through the first half of 2023, there have been 4,512 clinical trials initiated.

Funding by Source and Clinical Trials by Year of Initiation

US VC Funding Pharma R&D (Domestic)

NIH US Clinical Trials

$180

$150

$120

$90

Key Takeaway: A decline in VC funding has not slowed clinical trial activity. Current activity is on pace to near 2022 levels, as the sector has varied sources of funding from which to draw.

Funding (In Billions)

$60

$30

Number of Clinical Trials Initiated (In Thousands)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Clinicaltrials.gov, Pitchbook, NIH, Statista

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LIFE SCIENCES SEPTEMBER 2023

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Drug Trials Dominate the Global Clinical Trials Market

› Clinical trials drive real estate demand: › R&D Facilities – Lab space is needed for a variety of stages of drug development, including preclinical testing, formulation development, and clinical sample analysis › M&D Facilities – If a clinical trial is successful, companies may need additional space to produce and distribute the product at scale › Office Facilities – Substantial regulatory requirements often require additional administrative personnel to ensure compliance and successful project management › Phase 3 trials can involve thousands of patients and generally require the most space

The Number of Clinical trials Are Greatest in Markets With the Largest Research Facilities.

Early Phase 1 4%

Phase 4 9%

Phase 1 17%

Other 34%

Drug 38%

Phase 3 23%

Phase 1 | Phase 2

Key Takeaway: Space needs for life science companies can vary depending on the stage and type of clinical trials.

Biological 13%

Phase 2 | Phase 3

Phase 2 32%

Device 15%

Source: Clinicaltrials.gov

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LIFE SCIENCES SEPTEMBER 2023

The Number of Clinical Trials in a Market can Be an Indicator of Future Space Requirements

› Markets with the greatest number of currently active clinical trials also have large research institutions, including universities and research hospitals. › Additionally, these markets tend to have large population centers from which researchers can attract and select enrollment for trials. › Enrollment of active trials averages approximately 3,000 enrollees per trial, when removing an outsized single trial in Oxford, UK.

Active Clinical Trials Enrollment by Market

Active Trials Enrollment

Key Takeaway: Clinical trials, as well as enrollment, can impact space requirements of occupiers. Some trials with significantly large enrollments may require additional office space and dry labs.

Enrollment (In Millions)

Number of Active Trials (In Thousands)

Source: Clinicaltrials.gov

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LIFE SCIENCES SEPTEMBER 2023

Increasing the Efficiency of the Approval Process Aims at Decreasing Time-to-Market in U.S.

› A commitment by the FDA to improve their approval process is bearing results. Biologicals have seen more approvals in 2023 than the previous three years. Novel drug approvals have already surpassed 2022 levels and are likely to match or exceed 2021 levels. › Post-approval process, facility needs vary depending on the science being developed. Biological drugs are derived using a living source and therefore may require specialized facilities to manufacture, while production of chemically synthesized drugs can be standardized more easily. › Clinical trials often continue following approval, particularly for biologicals, but space requirements may change, as some companies shift their focus to large-scale production.

FDA Drug and Biological Approvals

Novel Drug Approvals Biologicals

Key Takeaway: Improving the time to market means facilities will need to be ready for faster production as well.

2015

2016

2017

2018

2019

2020

2021

2022 YTD 2023

Source: U.S. Food and Drug Administration

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LIFE SCIENCES SEPTEMBER 2023

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What Makes an Emerging Market?

› A growing inventory can help propel innovation in life sciences. As more state-of-the-art labs and research facilities become available, life sciences firms and institutions have greater access to cutting-edge infrastructure that can accelerate development. › Expanding inventory in emerging markets often creates a cost advantage for life sciences companies.

A Growing Inventory

200%

186%

180%

Space that is proposed and under construction is indicative of a market that’s committed to growth.

160%

Compared to established hubs, rental and real estate operation expenses are often lower in emerging markets.

140%

120%

100%

MSF

78%

73%

80%

67%

60%

40%

27%

20%

27%

Costa Rica* Salt Lake City Austin

Houston

Atlanta

Dallas/Ft. Worth

Phoenix

Existing

Under Construction

Proposed

% of Existing Inventory U/C & Proposed

Source: Cushman & Wakefield Research *Inventory is manufacturing

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LIFE SCIENCES SEPTEMBER 2023

What Makes an Emerging Market?

› An influx of public and private funding in emerging markets signals long-term investor interest, drives rapid infrastructure development, empowers startups and fuels research endeavors. › Venture capitalists recognize the potential for high returns and groundbreaking discoveries that startups in emerging markets offer. › Public sector investment and incentives play an important role in the growth of emerging life sciences markets. Grants, tax breaks and infrastructure development solidify these markets as attractive destinations for life sciences innovation.

Public and Private Fund Attraction

Austin

$318.85

Houston

$111.63

Dallas/Ft. Worth

$76.93

Phoenix

$73.12

Funding fuels growth and high levels of funding can accelerate growth in emerging markets.

Atlanta

$56.87

Salt Lake City

$27.69

$50.00

$100.00 $150.00 $200.00 $250.00 $300.00 $350.00

Millions (USD)

Total Funded Amount (Top 10 Deals, 1H 2023)

Source: Pitchbook

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LIFE SCIENCES SEPTEMBER 2023

What Makes an Emerging Market?

› Emerging markets are becoming talent magnets, as researchers, scientists, industry experts and entrepreneurs are often willing to relocate for lower costs of living. › The demand for skilled talent in the life sciences sector is high, and life sciences firms are expanding operations to emerging markets so they can tap the talent they offer. › Life sciences employment growth in emerging markets has the added benefit of bolstering economic resilience. A diversified and growing workforce makes the markets attractive for businesses and investors seeking stability.

High Growth in Employment

30,000

90%

79%

80%

25,000

67%

70%

Employment growth shows that an emerging market can meet the talent needs of life science firms.

58%

20,000

60%

48%

50%

44%

15,000

40%

35%

10,000

30%

20%

5,000

10%

Houston Dallas/Ft. Worth Salt Lake City

Atlanta

Phoenix

Austin

# Employees (2023)

10 Yr Growth Rate

Hub Market 10 yr Growth Rate

Secondary Market 10 yr Growth Rate

Source: Lightcast

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LIFE SCIENCES SEPTEMBER 2023

What Makes an Emerging Market?

› An increase in the number of bio-degrees awarded signals two things. The region's commitment to the life sciences sector and a pipeline of fresh talent with specialized knowledge. Both are very attractive to life sciences firms and investors. › A rise in bio-degree awards also sparks collaborative relationships between academia and industry in emerging markets. These synergistic partnerships can advance research, development and commercialization efforts in the industry.

Growth in Bio-Degree Awards

6,000

120%

105%

Increasing numbers for degree awards has two primary benefits: an fresh skilled talent and more public/private partnerships.

5,000

100%

90%

4,000

80%

69%

3,000

60%

50%

2,000

40%

28%

1,000

20%

Houston Dallas/Ft. Worth Phoenix

Atlanta

Austin

Salt Lake City

Degrees Awarded (2012)

Degrees Awarded (2021)

10 Yr Growth Rate

Hub Market 10 yr Growth Rate

Secondary Market 10 yr Growth Rate

Source: Lightcast

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LIFE SCIENCES SEPTEMBER 2023

Appendix: Glossary of Terms and Data Definitions

• NIH funding data downloaded from U.S. National Institutes of Health website. Cushman & Wakefield assigned funding recipients to specific markets based upon the address listed in the NIH data. In most cases, the NIH market represents the MSA and/or greater market area. • Private equity venture capital and public offering data provided by PitchBook. *Data has not been reviewed by PitchBook analysts. Market totals based upon MSAs with the following exceptions: • New Jersey includes the entire state. • New York City includes the five boroughs. • Raleigh-Durham includes Raleigh and Durham MSAs. • San Francisco Bay Area includes San Francisco San Francisco/Oakland and San Jose MSAs. • Canada and UK markets represent the cities. • Clinical trials data downloaded from U.S. National Library of Medicine for both privately and publicly funded trials globally. The data only included trials with the following recruitment status: not yet recruiting, recruiting, enrolling by invitation and active-not recruiting. Markets based on MSAs with the following exceptions: • New Jersey includes the entire state. • Raleigh-Durham includes Raleigh and Durham MSAs. • San Francisco Bay Area includes San Francisco San Francisco/Oakland and San Jose MSAs. • Canada and UK markets represent the cities. • Rents and vacancies are calculated overall (including direct and sublease space). • U.S. employment data is calculated at the MSA level with the following exceptions: • New Jersey includes the entire state. • New York City includes New York, Kings and Queens counties. • Raleigh-Durham includes Raleigh and Durham MSAs. • San Francisco Bay Area includes San Francisco San Francisco/Oakland and San Jose MSAs. • Canada and UK markets represent the cities. • Rents and vacancies are calculated overall (including direct and sublease space). • U.S. employment data is calculated at the MSA level with the following exceptions: • New Jersey includes the entire state. • New York City includes New York, Kings and Queens counties. • Raleigh-Durham includes Raleigh and Durham MSAs. • San Francisco Bay Area includes both the San Francisco/Oakland and San Jose MSAs.

• Canada employment data calculated at the CMA level. • UK employment data calculated at the county level. • U.S. employment data calculated using six life science industries (sorted by NAICS code) • 325412 - Pharmaceutical Preparation Manufacturing • 325414 - Biological Product (except Diagnostic) Manufacturing • 541380 - Testing Laboratories • 541713 - Research and Development in Nanotechnology • 541714 - Research and Development in Biotechnology (except Nanobiotechnology) • 541715 - Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) • Canada employment data calculated using two life science industries (sorted by NAICS code) • 3254 - Pharmaceutical and medicine manufacturing • 5417 - Scientific research and development services • UK employment data calculated using four life science industries (sorted by SIC code) • 2110 - Manufacture of Basic Pharmaceutical Products • 2120 - Manufacture of Pharmaceutical Preparations • 7211 - Research and Experimental Development on Biotechnology • 7219 - Other Research and Experimental Development on Natural Sciences and Engineering • U.S. job postings and hires based upon 20 different occupations (sorted by SOC code). • 11-9121 - Natural Sciences Managers • 17-2031 - Bioengineers and Biomedical Engineers • 17-2041 - Chemical Engineers • 19-1011 - Animal Scientists • 19-1012 - Food Scientists and Technologists • 19-1013 - Soil and Plant Scientists • 19-1021 - Biochemists and Biophysicists • 19-1022 - Microbiologists • 19-1023 - Zoologists and Wildlife Biologists • 19-1029 - Biological Scientists, All Other

•

19-1041 - Epidemiologists

• 19-1042 - Medical Scientists, Except Epidemiologists • 19-1099 - Life Scientists, All Other • 19-2031 - Chemists • 19-4012 - Agricultural Technicians • 19-4013 - Food Science Technicians • 19-4021 - Biological Technicians • 19-4031 - Chemical Technicians • 19-4099 - Life, Physical, and Social Science Technicians, All Other • 29-2018 - Clinical Laboratory Technologists and Technicians

• Canada job postings and hires based upon 5 different occupations (sorted by NOC code). • 2112 - Chemists • 2121 - Biologists and related scientists • 2134 - Chemical engineers • 2211 - Chemical technologists and technicians • 2221 - Biological technologists and technicians • 3211 - Medical laboratory technologists • UK job postings and hires based upon 6 different occupations (sorted by SOC code). • 2111 - Chemical Scientists • 2112 - Biological Scientists and Biochemists • 2113 - Physical Scientists • 3119 - Science, Engineering and Production Technicians n.e.c. • 3212 - Medical laboratory technologists and pathologists’ assistants • 3217 - Pharmaceutical Technicians • 3218 - Medical and Dental Technicians • U.S. degree completions based upon 129 different programs offered across various institutions. • Canada degree completions based upon 20 different programs offered across various institutions.

LIFE SCIENCES SEPTEMBER 2023

33 / CUSHMAN & WAKEFIELD

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com.

Authors

Sandy Romero Research Manager

David C. Smith Head of Americas Insights Global Research +1 404 853 5310 david.smith4@cushwake.com

John McWilliams Senior Research Analyst Alternatives & Practice Groups +1 303 312 4233 john.mcwilliams@cushwake.com

Ethan Tribble Research Analyst Alternatives & Practice Groups +1 832 474 7555 ethan.tribble@cushwake.com

Global Research +1 212 713 6970 sandy.romero@cushwake.com

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