2023 September Life Sciences Update

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

16 / CUSHMAN & WAKEFIELD

LIFE SCIENCES SEPTEMBER 2023