CordenPharma Proposal

OME

LIFE SCIENCES PRACTICE GROUP

OPTION #2 – OCCUPIER CUSTOMIZE AS NEEDED

LIFE SCIENCES Occupier Real Estate Solutions

OUR REAL ESTATE SOLUTIONS

Location & Portfolio Strategy

Market, Demographic & Labor Analyses

Incentives Negotiation

DRIVING YOUR BUSINESS STRATEGY & FINANCIAL GOALS

INTEGRATED PLATFORM

Transaction Management

Facility Design & Project Management

Maintenance & Janitorial Solutions

INDUSTRY-LEADING THOUGHT LEADERSHIP 14 Cushman & Wakefield

2022 Q1

Sector Growth = Increased Demand for Lab Space

Correlation between Talent & Lab Space Life Sciences Inventory & Employment Pool, Select U.S. Markets

Growth in Life Sciences Markets Under Construction Space & Projected Growth in Labor Pool

Life Sciences Update North American Report

Lab Space: Current Inventory & Under Construction

Projected Growth in Labor Pool & Lab Inventory

50

Current Inventory Under Construction U/C as % of Inventory

16%

San Francisco Bay Area

45

SF Bay Area

50%

60

New York City

14%

40

50

40%

12%

Boston

35

Raleigh-Durham

40

10%

30

30%

San Diego

Seattle

30

Suburban MD

8%

Boston

25

MSF

20%

Suburban MD

20

San Diego

20

6%

Philadelphia

Talent is on the Rise

10%

New Jersey

10

15

Raleigh/Durham Life Sciences Inventory (MSF)

New Jersey

4%

Philadelphia

10

0%

0

Chicago Forecasted Labor Growth (2021-2025) 2%

Los Angeles

Denver

Markets with the Largest Talent Pool Life Sciences Total Employment and Labor Pool by Market (MSA), 2021 0 5 0

Seattle

Chicago

0%

New York City

0%

10%

20%

30%

40%

20

40

60

80

100

Under Construction as % of Current Inventory

Employment Pool (Thousands)

Life Sciences Job Growth Accelerated in 2021 Second Largest YoY Growth (+11.4%) in past 30 Years, Behind only 2018

Sacramento Indianapolis St. Louis

Source: Emsi, Cushman & Wakefield Research

Source: Cushman & Wakefield Research

Source: Esmi, Cushman & Wakefield Research

San Diego DC Metro Los Angeles Seattle Chicago Raleigh-Durham Houston Baltimore Minneapolis Dallas Portland, OR Salt Lake City Madison, WI Miami Pittsburgh Detroit Atlanta Denver

Employment: R&D in Biotechnology Industry

Employment Growth by Decade (Average Annual)

Funding Remains Strong

There is, of course, a correlation between the depth of the employment pool and the life sciences inventory in each market. Across these 12 markets, the average inventory-to-talent ratio is 462 sf. Several Western markets—as well as Raleigh-Durham—have higher ratios above 600 sf: San Francisco Bay Area, San Diego and Denver. Chicago is the only market with a ratio below 250 sf per potential worker. Boston has the largest labor pool and its inventory is scheduled to grow the most with over 9.6 msf of lab space currently under construction.

The 10 featured U.S. life sciences markets currently have 17.1 msf of lab space under construction. This represents 10.7% of current inventory. Currently, Boston (9.6 msf), San Francisco Bay Area (2.9 msf) and San Diego (2.3 msf) have the most construction in the pipeline. Although starting from a lower basis, double-digit increases in inventory are coming for New York City (26%), Chicago (14%) and Philadelphia (10%). New lab space is needed, especially in tight markets with sub-6% vacancy rates (e.g., San Diego, Philadelphia and Boston).

Total Employment (U.S.)

Life Sciences (U.S.)

300

7%

6.6%

275

267

6%

250

Life Sciences Investment by Region In 2021, the top markets for life sciences VC investment remained the same as the previous year: Boston, San Francisco Bay Area, San Diego and New York City—accounting for $41.3 billion in 2021. There were 29 completed deals for at least $250 billion, of which 20 were VC funding rounds and nine were IPOs. Three-fourths of those large deals occurred in just four markets: Boston (11), San Francisco (7), San Diego (3) and New York City (2).

5%

225

4%

200

Boston San Francisco Bay Area New York City-New Jersey Philadelphia

Thousands

175

3%

10 / CUSHMAN & WAKEFIELD

LIFE SCIENCES Q1 2022

Life Sciences VC & Public Capital Invested by Region, 2021

0 10 20 30 40 50 60 70 80 90

150

2.0%

2%

Thousands

1.7%

Source: Emsi

125

1.0%

1%

$6.6B San Diego

$3.1B New York City

0.5%

100

$52.4B Total

0.0%

0%

The top 10 markets account for 45% of the U.S. life sciences talent pool (including current employment and labor pool). This percentage is up from 42% over the past five years, illustrating that job growth continues to be concentrated in these top markets. Labor pool growth in the top 10 markets is up 19% since 2016 and the next tier of markets (#11-20) have increased a similar amount over the past five years (+16%). After that, however, growth is anemic with all other markets accounting for just 3.3% growth since 2016. Major life sciences hubs will continue to be drivers of life science and lab real estate with employment and funding trends also boding well for real estate growth in emerging markets around the country.

1991-2001

2001-2011

2011-2021

Source: U.S. Bureau of Labor Statistics

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

$1.4B Washington DC Metro

$18.0B Boston

Unlike the broader economy, life sciences employment did not falter during the pandemic. Instead, there was only one month of job losses (April 2020 declined by 0.1%) and year-end job growth was up 7.9% YoY in 2020 and 11.4% in 2021.

$2.1B Seattle

$0.8B Salt Lake City

$0.9B New Jersey

$0.2B Montreal

Sector Growth = Increased Demand for Lab Space

$0.7B Toronto

$1.5B Philadelphia

$0.7B Denver

$13.6B San Francisco Bay Area

8 / CUSHMAN & WAKEFIELD

LIFE SCIENCES Q1 2022

$0.4B Vancouver

$0.8B Chicago

$1.1B Los Angeles

$0.5B Raleigh / Durham

Source: PitchBook

6 / CUSHMAN & WAKEFIELD

LIFE SCIENCES Q1 2022

Growth in the life sciences sector has directly translated into increased demand for lab space across major markets. Coupled with strong capital flows, life sciences companies have increased their footprint in most markets, driving up rents and increasing occupancies. This uptick has attracted more jobs and more talent to the sector as evidenced by the growth of employment. Investors are trying to keep up with this demand in 10 key U.S. markets with the current robust construction pipeline totaling 17.1 million square feet (msf).

9 / CUSHMAN & WAKEFIELD

LIFE SCIENCES Q1 2022

Proposal for Real Estate Services CORDENPHARMA 55