2023 September Life Sciences Update

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

0%

$20

-20%

$0

-40%

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

Source: Cushman & Wakefield Research

8 / CUSHMAN & WAKEFIELD

LIFE SCIENCES SEPTEMBER 2023