2023 September Life Sciences Update

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

5%

New York City

Philadelphia

Forecasted Labor Growth (2022-2026)

New Jersey

0%

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

15 / CUSHMAN & WAKEFIELD

LIFE SCIENCES SEPTEMBER 2023