H1 2024 Life Sciences Update Market Summaries
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Markets
Emerging Markets 17 Atlanta 18 Austin 19 Dallas/Ft. Worth 20 Houston 21 Indianapolis 22 Phoenix 23 Salt Lake City 24 Costa Rica 25
Boston* Chicago Denver
02 03 04 05 06 07 08 09
Europe Belgium
26 27 28 29
France: Paris
Los Angeles & Orange County
Germany: Berlin Germany: Munich 30 Germany: Rhine-Neckar Region 31 Italy: Milan 32 Netherlands: Leiden 33 Spain: Barcelona 34 UK: Cambridge 35 UK: London 36 UK: Oxford 37
New Jersey New York Philadelphia*
Raleigh-Durham*
San Diego*
10
San Francisco Bay Area*
11
Seattle 12 Suburban Maryland (I-270 Corridor)* 13 Montreal 14 Toronto 15 Vancouver 16
* Hub Market
Boston HUB MARKET
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Market Summary • Greater Boston remains an increasingly dominant center of the life sciences industry, with a consistent international audience and an influx of scientists looking to contribute to the thriving environment. • The high concentration of R&D firms in Cambridge, particularly around Kendall Square, coupled with the region’s robust pool of life sciences talent due to its proximity to Harvard, MIT, and other world-renowned institutions, make it one of the most preeminent locations for life sciences activity in the world. • Greater Boston is home to top life sciences firms from around the world, including Takeda, Vertex, Biogen, Moderna and Foundation Medicine. • Year-to-date (YTD) construction completions were nearly double the project completions during the first half of 2023. More than 2.8 million square feet (msf) is still under construction and anticipated to deliver by year-end 2024. The total expected construction deliveries of 5.4 msf for 2024 will decline year-over-year (YOY), from 6.7 msf of deliveries in 2023. • New demand for both existing and new buildings slowed in the first half of 2024, totaling 450,833 sf of leasing activity, down 71% when compared to the first half of 2023. Of the 2.6 msf of construction deliveries in the first half of 2024, only 38% are currently leased. Projects that are delivered to the market mostly vacant have pushed the overall vacancy rate to its five-year high of 26.6%.
Public & Private Funding (2024 1H)
Rent vs. Vacancy Comparison
Fast Lab Stats
$15 $25 $35 $45 $55 $65 $75 $85 $95 $105
0% 3% 6% 9% 12% 15% 18% 21% 24% 27%
Company
Deal Type
Completed VC Round $ Raised (MM)
44.5 MSF Market Square Footage $90.39 $ Per SF 26.6% Vacancy 109.1K Total Life Sciences
Zenas BioPharma
Later Stage VC May 2024 4th Round $200.2 Later Stage VC Mar 2024 4th Round $181.9
Sionna
Vacancy Rate
Cerevance Later Stage VC Apr 2024 5th Round $163.0 Obsidian Therapeutics Later Stage VC Mar 2024 3rd Round $160.5 FogPharma Later Stage VC Feb 2024 5th Round $145.0 Keros Therapeutics (NAS: KROS) IPO Jan 2024 $140.0 Rapport Therapeutics (NAS: RAPP) IPO Jun 2024 $136.0 NextPoint Early Stage VC Feb 2024 3rd Round $122.5
Average Asking Rent $/sf
Fractyl Health (NAS: GUTS)
Employment 98.4% Life Sciences Employment 10-Year Growth Rate
2015 2017 2019 2021
2023
IPO
Feb 2024
$110.0
Asking Rents
Overall Vacancy
Sublease Vacancy
Inari
Later Stage VC Jan 2024 6th Round $103.0
Representative Investment Sale Transactions (2024 1H)
Address
Type
$/psf
$ MM $1.66 $1.66
RBA SF
Date
Buyer
Representative Life Sciences Companies
Life Sciences Labor: Average Monthly Job Postings and Hires
Office Office
300 Binney St 290 Binney St
$2,049.38 $2,049.38
240,000 March 2024 NBIM 570,000 March 2024 NBIM
Company Alnylam
Type
1,000 1,500 2,000 2,500 3,000
HQ HQ
Biogen
Bristol Myers Squibb
Regional HQ
Representative Lease Transactions (2024 1H)
Foundation Medicine HQ Moderna Tx HQ Novartis
Company
Address
City
Size (SF) New/Renewal
Type
Quarter Landlord/ Sublandlord
ADA Forsyth
Direct Direct
100 Chestnut Street Somerville
76,000 New Lease
Q1 Q1
North River Leerink
Regional HQ Regional HQ Regional HQ Regional HQ
0 500
BPG Bio
300 Third Avenue Waltham 70,000 New Lease
Lincoln Property Company
Pfizer Sanofi
Treeline Biosciences
500 Arsenal Street
Watertown 67,362 Renewal/Expansion Direct
Q2 Alexandria Real Estate Equities
2020 2021
2022
2023
2024
Tiax
35 Hartwell Avenue Lexington
46,700 Renewal
Direct Direct Direct Direct Direct
Q1 Q1 Q1 Q1 Q1 Q1
Anchor Line Partners Anchor Line Properties North River Company
Takeda Ph Vertex Ph
Hires Unique Postings
ANDE
266 Second Avenue Waltham 46,040 Renewal
HQ
Nest.Bio
100 Chestnut Street Somerville
41,000 New Lease
$2.7B Massachusetts General Hospital $1.7B Brigham and Women’s Hospital $1.0B Boston Children’s Hospital Top NIH-Funded Institutions (2020-2024 1H)
Bio Degree-Awarding Institutions, Metro Area • Boston University • University of Massachusetts Boston • Harvard University • MIT • Boston College • Northeastern University • Tufts University • Massachusetts College of Pharmacy and Health Sciences
Annual Life Sciences Degree Completions 2013 4,887
TScan Therapeutics
830 Winter Street
Waltham 25,472 New Lease Cambridge 25,000 Renewal
Morgan Stanley BioMed Realty
BioNTech
40 Erie Street
Nexo Tx & Aleksia Tx Incendia Therapeutics
500 Forge Street
Watertown Cambridge
21,251 New Lease 16,972 New Lease
Sublease
Boylston Properties
1 Canal Park
Direct
Q2 Breakthrough Properties
2023 7,015 Up 44%
Research Contributors Riley McMullan riley.mcmullan@cushwake.com
Nicole Salamone nicole.salamone@cushwake.com
Katie Mahoney kathleen.mahoney@cushwake.com
Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook
CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2024 FEBRUARY
Chicago
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Market Summary
Public & Private Funding (2024 1H)
Rent vs. Vacancy Comparison
8.2 MSF Market Square Footage $47.77 $ Per SF 20.5% Vacancy 40.0K Total Life Sciences Employment 7.2% Life Sciences Employment 10-Year Growth Rate Fast Lab Stats
• Life sciences companies are taking note of Chicago’s world-class research universities, talent pipeline, robust network of existing companies, and its competitive cost compared to other major life sciences markets. • Chicago’s life sciences ecosystem has seen unprecedented growth, with substantial capital infusion and the development of funding and mentorship programs, like the University of Chicago Innovation Fund and Chicago Biomedical Consortium’s Entrepreneurial Fellows program. Chicago was chosen as the second location of the Chan Zuckerburg Biohub Network, an investment that will propel development and job growth. • Notable recent developments include Trammell Crow’s Evanston Labs, located at 710 Clark Street in suburban Evanston, which delivered in the second quarter of 2024. The 175,000-sf development is near Northwestern University. Hyde Park Labs, located at 5201 S. Harper Ave., is currently under construction. The 302,000-sf facility is near the University of Chicago’s campus and is being developed by Beacon Capital Partners and Trammell Crow Company. • Market fundamentals continued to improve through mid-2024. Due to recent construction completions over the last 12 months, overall vacancy trended upward—to 20.5% from 20.2% last year. Tenant demand remains high, with 123,000 of new leasing activity over the last 12 months.
$ Raised (MM)
25%
$55
Company
Deal Type
Completed
Type
Cour
Later Stage VC Jan 2024 1st Round
105.0
$50
20%
Advanced Medicine Ptnrs.
Early Stage VC Jun 2024 1st Round
60.0
$45
Vacancy Rate
15%
Vivacelle Bio
Later Stage VC Feb 2024 3rd Round Later Stage VC Apr 2024 4th Round Later Stage VC Feb 2024 7th Round Later Stage VC Jan 2024 3rd Round
20.0 14.0
$40
Nucleai
10%
Surgimatix
3.0 2.2
$35
Novian Health Acorn Genetics BiomeSense Galaxy Labs Inomagen Therapeutics
5%
$30
Seed Round
Jan 2024 1st Round
1.9
Average Asking Rent $/sf
Grant Angel
Mar 2024
2.0 0.8
0%
$25
2015 2017 2019 2021
2023
Apr 2024 Angel
Asking Rents
Overall Vacancy
Sublease Vacancy
Later Stage VC Apr 2024 2nd Round
0.2
Representative Life Sciences Companies
Life Sciences Labor: Average Monthly Job Postings and Hires
Representative Lease Transactions (2024 1H)
Company
Type
Company
Address
Size (SF) New/Renewal
Type
Quarter
Landlord
1,000 1,200 1,400 1,600
Mattiq
400 North Aberdeen
17,377 New Lease
N/A
Q1
Trammell Crow Company
AbbVie Abbott
HQ HQ HQ
Baxter International Baxalta Incorporated
Regional Office Horizon Therapeutics North American HQ Astellas Pharma North American HQ Luminex Regional Office Pfizer Regional Office Lundbeck HQ Sysmex North American HQ
- 200 400 600 800
2020 2021
2022 2023 2024
Hires Unique Postings
Bio Degree-Awarding Institutions, Metro Area • University of Chicago • Northwestern University • University of Illinois Chicago • Illinois Institute of Technology • Loyola University Chicago • DePaul University
Annual Life Sciences Degree Completions
Top NIH-Funded Institutions (2020-2024 1H) $1.7B Northwestern University at Chicago $1.1B University of Chicago $695M University of Illinois at Chicago
2013 7,882 2023 7,305 Down 7%
Research Contributors Gregory Rogalla gregory.rogalla@cushwake.com
Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook
CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2024 FEBRUARY
Denver
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Market Summary
Public & Private Funding (2024 1H)
Rent vs. Vacancy Comparison
5.9 MSF Market Square Footage $23.47 $ Per SF 7.7% Vacancy 8.5K Total Life Sciences Fast Lab Stats
• The rising cost of capital put a damper on investment activity across all major sectors of the commercial real estate market, including life sciences. As a result, there were no life sciences investment sales recorded in the first half of 2024. • Due to economic headwinds facing the industry, life sciences leasing experienced a YOY decline, with the first half of 2024 recording just under 155,000 sf of leasing activity, less than half the activity recorded in the first half of 2023. • While several large users have facilities under construction in the Denver-Boulder market, speculative development remains in its nascency in the area, particularly for lab space. In many cases, life sciences developers are opting to renovate existing flex or industrial space rather than building new facilities. • Despite the decrease in leasing activity, the lack of supply has kept vacancy in check, with overall vacancy dropping 30 basis points (bps) compared to the 2023 year-end total.
20%
$25
Company
Deal Type
Completed VC Round $ Raised (MM)
Enveda Biosciences
Later Stage VC
Jun 2024 3rd Round
$174.0
16%
$20
Synergy Spine Solutions
Vacancy Rate
Later Stage VC
Jan 2024 3rd Round
$30.0
12%
$15
Matter (Services (B2C Non-Financial))
Later Stage VC
Feb 2024 4th Round
$26.0
8%
$10
Eximis Surgical Ajna BioSciences Think Bioscience
Later Stage VC
May 2024 3rd Round Jun 2024 1st Round May 2024 2nd Round Feb 2024 3rd Round
$15.3 $9.0 $6.0 $5.0
Seed Round Seed Round
4%
$5
Average Asking Rent $/sf
Flagship Biosciences Later Stage VC Eon (Healthcare Technology Systems) Later Stage VC
0%
$0
Employment 36.0% Life Sciences Employment 10-Year Growth Rate
2015 2017 2019 2021
2023
Jan 2024 3rd Round
$3.0
Asking Rents
Overall Vacancy
Sublease Vacancy
KromaTiD
Later Stage VC
Jan 2024 4th Round
$2.1
GelSana
Grant
Apr 2024
$1.3
Representative Life Sciences Companies
Life Sciences Labor: Average Monthly Job Postings and Hires
Representative Lease Transactions (2024 1H)
Company Medtronic
Type
Company
Address
Size (SF) New/Renewal Type
Quarter
Landlord
- 100 200 300 400 500 600 700 800 900
Undisclosed
111000 Broomfield Lane 2425 - 2555 55th Street
68,676 New 48,000 New 17,500 New 13,321 New
Direct
Q1
Morgan Stanley
Regional Office Research Facility
DNA Technologies
Expansion
Q2 Q2 Q2
Washington Capital Management Washington Capital Management Washington Capital Management
Pfizer
Hyde Engineering & Consulting 1450 Infinite Drive
Direct Direct
Eli Lilly Research Facility Agilent Technologies Research Facility Terumo BCT HQ AGC Biologics Research Facility Biodesix HQ KBI Biopharma R&D and Manufacturing Enveda Biosciences HQ
Bioloomics
2425 - 2555 55th Street
2020 2021
2022
2023 2024
Hires Unique Postings
Bio Degree-Awarding Institutions, Metro Area • University of Colorado – Denver • University of Colorado – Boulder • Colorado State University • Colorado School of Mines
Annual Life Sciences Degree Completions 2013 961 2023
$1.5B University of Colorado Denver $250M University of Colorado $166M National Jewish Health Top NIH-Funded Institutions (2020-2024 1H)
1,511 Up 57%
Research Contributors Cara Stamp cara.stamp@cushwake.com
Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook
CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2024 FEBRUARY
Los Angeles & Orange County
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Market Summary
Public & Private Funding (2024 1H)
Rent vs. Vacancy Comparison
Fast Lab Stats 8.6 MSF Market Square Footage $39.91 $ Per SF 2.8% Vacancy 42.0K Total Life Sciences Employment 14.8% Life Sciences Employment 10-Year Growth Rate Fast Lab Stats
• With approximately 8.6 msf of regional lab inventory, the Los Angeles and Orange County life sciences market has emerged as a growth market with great potential. Though smaller in scale compared to its national contemporaries, a surplus of aged and obsolete industrial flex and office space provides a hardy supply of renovation opportunities to meet the growing demand. • As of mid-year 2024, nearly 5,700 life sciences institutions called Los Angeles and Orange County home and employed over 42,000 people. The local economic output of the life sciences industry is estimated to be over $113.3 billion. • Many of the submarkets across Los Angeles and Orange County are viable locations for the life sciences industry due to their proximity to world-class institutions or because they are anchored in areas with significant workforce tailored toward the industry. These clusters include South Bay (El Segundo), LA North (Thousand Oaks), Tri-Cities (Pasadena), the Westside (Culver City, Santa Monica, et al.) and Orange County. By midyear 2024, most of the new leasing activity was concentrated in southern and coastal submarkets in Orange County, such as Irvine and Tustin. • As of July 2024, the Los Angeles and Orange County market was one of the largest beneficiaries of funding from the National Institutes of Health (NIH), totaling nearly $1.9 billion—or 32% of the NIH funding throughout the state of California. This was largely due to the region being home to several world class research and educational institutions, such as City of Hope, Caltech, USC, UCLA and Cal Poly Pomona.
0% 1% 2% 3% 4% 5% 6% 7% 8% 9%
$10 $15 $20 $25 $30 $35 $40 $45
Company
Deal Type
Completed VC Round $ Raised (MM)
CG Oncology (NAS: CGON)
IPO
Jan-2024
$380.0
TORL BioTherapeutics Later Stage VC
Apr-2024 3rd Round
$158.3
Vacancy Rate
ImmPACT Bio
Later Stage VC Later Stage VC Later Stage VC Early Stage VC Early Stage VC Later Stage VC Early Stage VC
Apr-2024 2nd Round $139.8 Feb-2024 3rd Round $135.0
Latigo Bio
Angitia Biopharmaceuticals
Jan-2024 4th Round
$86.0
Midi Health
Mar-2024 4th Round Jan-2024 3rd Round Apr-2024 1st Round May-2024 3rd Round
$60.0 $50.0 $33.0 $30.0
Average Asking Rent $/sf
$0 $5
Sonorous NV AccessHope
2015 2017 2019 2021
2023
Immunis
Asking Rents
Overall Vacancy
Sublease Vacancy
AtaCor Medical
Later Stage VC
Apr-2024 4th Round
$28.0
Representative Life Sciences Companies
Life Sciences Labor: Average Monthly Job Postings and Hires
Representative Lease Transactions (2024 1H)
Company
Address
Size (SF) New/Renewal
Type
Quarter Landlord
Company
Type R&D
2,500
Inari Medical
510 Technology Dr. 173 Technology Dr. 26630 Agoura Rd. 15771 Red Hill Ave.
27,197 New Lease 15,446 New Lease
Sublease
Q2
The Irvine Company The Irvine Company Arden Realty, Inc. Rexford Industrial
Kite Pharma
EnChannel Medical
Direct Direct
Q1
Top NIH-Funded Institutions (2020-2024 1H) $2.7B University of California Los Angeles $1.5B University of Southern California $879M University of California-Irvine Pharmaceutical Edwards Life Sciences Medical Devices Masimo Medical Devices Sanofi/Genzyme Pharmaceutical Celgene R&D Xencor R&D Baxter Pharmaceutical Seigfreid Pharmaceutical Grifols R&D Amgen
2,000
HRL Laboratories
15,080 Renewal
Q2
1,500
bioMérieux (Tempo CC)
13,775 New Lease 8,652 New Lease
Sublease
Q1 Q1
Velocity Clinical Research 1127 Wilshire Blvd.
Direct
Boulevard Investment Group
1,000
500
0
2020 2021
2022 2023 2024
Hires Unique Postings
Bio Degree-Awarding Institutions, Metro Area • California Institute of Technology • University of California – Los Angeles • University of Southern California • University of California – Irvine • California State Polytechnic U, Pomona
Annual Life Sciences Degree Completions
2013 8,535 2023 14,960 Up 75%
Research Contributors Dan Hunker Daniel.hunker@cushwake.com
Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook
CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2024 FEBRUARY
New Jersey
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Market Summary
Public & Private Funding (2024 1H)
Rent vs. Vacancy Comparison
Fast Lab Stats
• Although New Jersey’s life sciences market displayed signs of cooling during 2023, the sector still recorded several noteworthy transactions. Kenvue secured a total of 289,488 sf of office and lab space at the Summit East campus, while Avantor signed a 61,120-sf lease at 77 Corporate Drive in Bridgewater. Additionally, Cellares is opening a facility at 95 Corporate Drive in Bridgewater, which will produce 40,000 cell therapy batches annually, supported by $255 million in series C funding. • The first half of 2024 confirmed a slowdown in demand, primarily due to a decrease in venture capital (VC) funding. By mid-2024, VC funding totaled $90 million, a notable decline from $205 million in the first half 2023 and $435 million during the same period in 2022. Consequently, new leasing activity fell, with only 26,892 sf leased this year. The largest new transaction was Regen Lab’s 15,792-sf lease at 95 Greene St. in Jersey City, following their move from Brooklyn. Another notable transaction was Syneos Health’s 43,865-sf renewal at 301 College Road East in Princeton, which demonstrates their ongoing commitment to the market. • Supply constraints for lab space have persisted, largely due to a lack of new speculative construction. As of the second quarter of 2024, the overall vacancy rate stood at 11.1%, with significant variations across different regions. The I-78 and I-287 corridor boasted the lowest vacancy rate at 3.2%. The conversion to lab use of 77 Corporate Drive in Bridgewater is expected to alleviate some supply pressures in that submarket. In contrast, Northern New Jersey (NNJ) and the Princeton/Route 1 markets faced higher vacancy rates of 20.2% and 16.1%, respectively. Vacancy in NNJ was influenced by large blocks of space at 95 Greene St. in Jersey City, Merck’s former campus in Kenilworth and a full building vacancy at 185 Tabor Road in Morris Plains. Notable vacancies in the Princeton/Route 1 market included available space at 311 Pennington Rocky Hill Rd. in Hopewell on both a direct and sublet basis, along with a 96,018-sf sublease at 2 Clarke Drive in Cranbury.
$39
14%
Company
Deal Type
Completed VC Round $ Raised (MM)
19.3 MSF Market Square Footage $37.10 $ Per SF 11.1% Vacancy 62.7K Total Life Sciences Employment 18.7% Life Sciences Employment 10-Year Growth Rate
$37
12%
Claris Bio
Later Stage VC Jan 2024 1st Round
$57.0
Evergreen Theragnostics
Later Stage VC Mar 2024 4th Round
$26.0
$35
10%
Vacancy Rate
Chromocell Therapeutics (ASE: CHRO)
$33
8%
IPO
Feb 2024
$6.6
$31
6%
Cayaba Care Couragene
Early Stage VC Mar 2024 3rd Round
$4.4 $1.0 $0.7 $0.7
$29
4%
Seed Round
May 2024 2nd Round
iView Therapeutics Later Stage VC May 2024 2nd Round
$27
2%
Average Asking Rent $/sf
Vuja De Sciences
Later Stage VC May 2024 2nd Round
$25
0%
Accelerator/ Incubator
2015 2017 2019 2021
2023
4M Therapeutics
Jan 2024
Asking Rents
Overall Vacancy
Sublease Vacancy
Stevenson Search Partners
Later Stage VC Jan 2024 1st Round
Representative Life Sciences Companies
Life Sciences Labor: Average Monthly Job Postings and Hires
Representative Lease Transactions (2024 1H)
Company
Address
Size (SF) New/Renewal
Type
Quarter Landlord
Company
Type
1,000 1,200 1,400 1,600 1,800 2,000
Bristol Myers Squibb
Syneos Health RegenLab USA
301 College Road East, Princeton 95 Greene Street, Jersey City
43,865 Renewal 15,792 New Lease
Direct Direct
Q2 National Business Parks
HQ, ResearchFacility, other
Q1
Thor Equities
Johnson & Johnson
HQ, ResearchFacility, other
Merck
HQ, ResearchFacility, other
0 200 400 600 800
Bayer
HQ, ResearchFacility, other
Sanofi
RegionalOffice, ResearchFacility RegionalOffice, ResearchFacility
Novartis
Novo Nordisk RegionalOffice Teva Pharmaceuticals RegionalOffice, ResearchFacility PTC Therapeutics HQ, ResearchFacility
2020 2021
2022
2023 2024
Hires Unique Postings
Top NIH-Funded Institutions (2020-2024 1H) $338M RBHS-New Jersey Medical School $288M Rutgers, The State University of N.J. $231M Princeton University
Bio Degree-Awarding Institutions, Metro Area • Rutgers University • The College of New Jersey • Seton Hall University • Princeton University • NJIT
Annual Life Sciences Degree Completions
2013 4,690 2023 5,689 Up 21%
Research Contributors John Obeid john.obeid@cushwake.com
Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook
CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2024 FEBRUARY
New York
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Public & Private Funding (2024 1H)
Rent vs. Vacancy Comparison
Market Summary • The life sciences industry has expanded its footprint in New York, with state and city incentives encouraging developers to build labs for medical research. In 2022, New York City and the state of New York announced a partnership to develop a $1.6 billion Science Park and Research Campus (SPARC) in Kip’s Bay to expand the city’s life sciences and healthcare sectors. In 2023, the city and state of New York pledged an additional $10 million each, with $250 million from the Chan Zuckerberg Initiative for a new biomedical research hub with a focus on early disease prevention, detection and treatment. • Investors and developers worldwide continue to grow their presence in New York, as it has one of the most educated and diverse talent pools in the nation, along with first-class academic and medical institutions and premier venture capital (VC) ecosystems. • VC funding has slowed, but significant deals continue to transact. Drug discovery was a key area of focus for Formation Bio and LB Pharmaceuticals, which were among the top funded companies in 2024. • New York City has emerged as a viable life sciences market, with 3.9 msf of developed stock. One building delivered in the second quarter of 2024 at 2226 Third Ave., adding nearly 200,000 sf of space to the market. Over the next few years, life sciences supply will grow by almost 550,000 sf when the expected addition at 550 E. 29th St. is completed.
Fast Lab Stats
$15 $25 $35 $45 $55 $65 $75 $85 $95 $105
10% 15% 20% 25% 30% 35% 40% 45%
Company
Deal Type
Completed VC Round $ Raised (MM)
3.9 MSF Market Square Footage $99.27 $ Per SF 41.4% Vacancy 87.1K Total Life Sciences Employment 11.9% Life Sciences Employment 10-Year Growth Rate
Formation Bio
Later Stage VC Jun 2024 5th Round $372.0
EvolutionaryScale LB Pharmaceuticals Ajax Therapeutics Elion Therapeutics
Seed Round
Jun 2024 2nd Round $142.0
Vacancy Rate
Later Stage VC Jan 2024 5th Round $110.7 Later Stage VC May 2024 3rd Round $95.0 Later Stage VC Jun 2024 2nd Round $81.0
Verse Medical Later Stage VC Apr 2024 2nd Round $42.0 Glyphic Biotechnologies Early Stage VC Feb 2024 3rd Round $33.2 Deep Origin Early Stage VC Mar 2024 1st Round $25.5 Graviton BioScience Early Stage VC Feb 2024 3rd Round $25.0 PreciseDx Early Stage VC Apr 2024 2nd Round $20.7
0% 5%
Average Asking Rent $/sf
2015 2017 2019 2021
2023
Asking Rents
Overall Vacancy
Sublease Vacancy
Representative Life Sciences Companies
Life Sciences Labor: Average Monthly Job Postings and Hires
Representative Lease Transactions (2024 1H)
Company
Type
Company
Address
Size (SF) New/Renewal
Type
Quarter Landlord
1,000 1,500 2,000 2,500 3,000 3,500
18,120 New Lease 6,000 New Lease 7,302 New Lease
Sublease
430 East 29 th Street
Alexandria Real Estate Equities Alexandria Real Estate Equities Alexandria Real Estate Equities
Pfizer
HQ
Firmenich
Q2 Q2
Direct
Nilo Therapeutics 430 East 29 th Street
Bristol-Myers Squibb
HQ
Sublease
30-02 48 th Avenue
Q1
Insprina
Royalty Pharma
HQ
Erbitux
HQ
Eli Lilly HQ Intra-Cellular Therapies HQ Lexeo Therapeutics HQ Schodinger HQ Kallyope HQ
0 500
2020 2021
2022 2023 2024
Hires Unique Postings
Top NIH-Funded Institutions (2020-2024 1H)
Bio Degree-Awarding Institutions, Metro Area • Columbia University • New York University • Fordham University • City College of New York • New York Institute of Technology • Weill Cornell Medical College
Annual Life Sciences Degree Completions
$2.7B Columbia University Health Sciences $2.1B New York University School of Medicine $2.1B Icahn School of Medicine at Mount Sinai
2013 9,682 2023 12,301 Up 27%
Research Contributors Reed Hatcher reed.hatcher@cushwake.com
Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook
CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2024 FEBRUARY
Philadelphia HUB MARKET
View H1 2024 Life Sciences Update
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Market Summary
Public & Private Funding (2024 1H)
Rent vs. Vacancy Comparison
Fast Lab Stats
• Macroeconomic pressures have caused companies to preserve cash runway, which limits tenant mobility and keeps the focus on advancing research. Activity has been mostly limited to shared/co-lab facilities in 2024, even as quality lab space remains available, including second generation lab and sublease availabilities. Despite existing move-in ready and shell condition opportunities for purpose-built labs, companies are prioritizing research. • Phase 2 and 3 clinical trials accounted for 72.0% of completed trials in the first half of 2024 and for 64.0% of the total trials started in the first half of the year. Phase 4 clinical trials accounted for only 5.0% of all completions and 6.0% of all clinical starts. Of the Phase 4 clinical trials that completed YTD, the average time of study was five years, which reinforces the strategy to preserve limited cash runway in the near to midterm. • Pioneered in Philadelphia, mRNA technology presents a budding future for Philadelphia’s life sciences ecosystem. As evidenced by the Covid-19 vaccine, mRNA technology has incredible potential in the development of new vaccines against a wide range of pathogens and various types of cancer. Great potential is foreseen in using RNA splicing to correct genetic disorders. • The protection of homegrown emerging technology, like mRNA, has captured legislative attention. Pending legislation, like the U.S. Biosecure Act, is a response aimed at prohibiting engagement with biotech “companies of concern.” If passed, it could directly impact CDMO operations in Philadelphia and induce companies to capitalize on the strong existing biomanufacturing infrastructure
Company
Deal Type
Completed VC Round $ Raised (MM)
21.4 MSF Market Square Footage $53.53 $ Per SF 5.2% Vacancy 50.3K Total Life Sciences
$60
8%
Synnovation Therapeutics
Early Stage VC
Jan 2024 3rd Round
$102.0
$50
6%
Context Therapeutics Private Placement
May 2024 N/A
$100.0
$40
Vacancy Rate
Latus Bio
Early Stage VC Early Stage VC Later Stage VC Later Stage VC Later Stage VC
May 2024 1st Round Jun 2024 3rd Round Mar 2024 5th Round Jan 2024 5th Round Jan 2024 6th Round Jun 2024 3rd Round Feb 2024 1st Round Jan 2024 4th Round
$54.0
$30
4%
Interius
$51.4
Imvax
$34.0
$20
2%
Cagent Vascular
$28.7
$10
Proscia
$9.0 $4.9 $4.9 $4.8
Average Asking Rent $/sf
$0
0%
NexEos Bio
Seed Round Seed Round
Employment 20.7% Life Sciences Employment 10-Year Growth Rate
2015 2017 2019 2021
2023
Prolocor
Asking Rents
Overall Vacancy
Sublease Vacancy
SFA Therapeutics
Later Stage VC
Representative Life Sciences Companies
Life Sciences Labor: Average Monthly Job Postings and Hires
Representative Lease Transactions (2024 1H)
Company
Type
Company
Address
Size (SF) New/Renewal
Type
Quarter Landlord
1,400
Main Street Capital
DSM Biomedical
400 Devon Park Drive 9 Great Valley Parkway 727 Norristown Road
77,000 New
Lab
Q1
AstraZeneca Century Therapeutics Amicus Therapeutics
North America HQ
1,200
EQT Exeter
Endo Pharmaceuticals
58,700 Sublease
Office
Q2 Q2
Research Facility/HQ
1,000
Code Bio
23,000 New 1,000 New 2,000 New
Lab/Office
Beacon Capital
Research Facility GlaxoSmithKline Research Facility J&J/Janssen Research Facility/ Regional HQ Teva Pharmaceuticals Research/US HQ Endo Research Facility Merck Research Facility/HQ Incyte Research Facility/HQ
Third Arc Bio
3675 Market Street
Lab Lab
Q1 Q1
Cambridge Innovation Center
800
Nava Therapeutics
2929 Arch Street
B.Labs
600
400
200
0
2020 2021
2022
2023
2024
Hires Unique Postings
Roche/Spark Therapeutics
HQ/Research Facility/Manufacturing
Top NIH-Funded Institutions (2020-2024 1H)
Bio Degree-Awarding Institutions, Metro Area • Drexel University • Temple University • University of Delaware • University of Pennsylvania • St. Joseph’s University - University of the Sciences
Annual Life Sciences Degree Completions
$3.0B University of Pennsylvania $694M
$367M Temple University
2013 4,164 2023 5,173 Up 24%
Research Contributors Michael Hanes Michael.Hanes@cushwake.com
Children’s Hospital of Philadelphia (CHOP)
Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook
CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2024 FEBRUARY
Raleigh-Durham HUB MARKET
View H1 2024 Life Sciences Update
View All Markets
Market Summary
Public & Private Funding (2024 1H)
Rent vs. Vacancy Comparison
Fast Lab Stats
• North Carolina is home to one of the world's largest life sciences clusters, with 830 life sciences companies—657 of which are in Research Triangle Park in Raleigh-Durham. • A robust talent pool and pipeline from top-tier research universities in the region, as well as a low cost of living, make Raleigh-Durham one of the premier life sciences hubs in the United States. Significant job announcements and investment into the region have come from a diverse sector of life sciences companies. Novo Nordisk announced a $4.1 billion investment in Johnston County, and Kyowa Kirin announced a $530 million investment in Lee County. • In addition to the 12.2 msf of existing life sciences inventory, there were 9.7 msf in the pipeline, with 887,000 under construction at midyear 2024. Some of the proposed product is speculative, while other properties that are labeled life sciences could be built as other property types. • Rental rates have remained relatively stable over the last few quarters. However, because of newly delivered premium product, rates are expected to increase in Raleigh-Durham. • Raleigh-Durham is a major recipient of NIH funding. The top five funded institutions in the market are with Duke University, Univ of North Carolina Chapel Hill, Research Triangle Institute, Family Health International and North Carolina State University.
$10 $15 $20 $25 $30 $35 $40 $45
0% 3% 6% 9% 12% 15% 18% 21% 24% 27%
Company Completed VC Round $ Raised (MM) Areteia Therapeutics Early Stage VC Feb 2024 1st Round $425.0 restor3d Later Stage VC Jun 2024 6th Round $70.0 Elo Life Systems Early Stage VC Jan 2024 2nd Round $20.5 Avalo Early Stage VC May 2024 3rd Round $12.0 Avicenna Biosciences Early Stage VC Feb 2024 3rd Round $6.0 Dignify Therapeutics Seed Round Jan 2024 2nd Round $3.0 inSoma Bio Seed Round May 2024 2nd Round $2.7 Open Book Extracts Later Stage VC Mar 2024 6th Round $2.7 Lindy Biosciences Later Stage VC Mar 2024 3rd Round $1.7 Focal Medical Later Stage VC Mar 2024 3rd Round $1.0 Deal Type
12.2 MSF Market Square Footage $38.18 $ Per SF 24.9% Vacancy 37.3K Total Life Sciences
Vacancy Rate
Average Asking Rent $/sf
$0 $5
Employment 53.7% Life Sciences Employment 10-Year Growth Rate
2015 2017 2019 2021
2023
Asking Rents
Overall Vacancy
Sublease Vacancy
Representative Life Sciences Companies
Life Sciences Labor: Average Monthly Job Postings and Hires
Representative Lease Transactions (2024 1H)
Company
Type
Company
Address
Size (SF) New/Renewal
Type
Quarter Landlord
1,000 1,200 1,400
Novartis (Avexis)
Other – cGMP
Solvias
2400 Perimeter Park Drive
50,598 New
Q2 Longfellow Real Estate Partners Q2 Longfellow Real Estate Partners
Lab Lab Lab Lab Lab Lab Lab Lab Lab Lab Lab
Q2 Solutions (IQVIA) HQ Seqirus
EPL
615 Davis Drive
42,545 Renewal
0 200 400 600 800
Other – cGMP
Traitology
104 TW Alexander Drive 4022 Stirrup Creek Drive
30,300 New 24,597 New
Q1
Alexandria Real Estate Equities, Inc.
Regional Office & cGMP
ThermoFisher
Ionna
Q2 Goldman Sachs
Zoetis LLC
4222 Emperor Blvd
12,764 Renewal
Q1
Longfellow Real Estate Partners
LabCorp
HQ
Fujifilm Diosynth Biotechnologies
Crosslink Orthopedics, LLC 175 Southport Drive
11,416 New
Q2 Trinity Capital Advisors Q2 Trinity Capital Advisors
HQ
2020 2021
2022
2023 2024
Raytheon Company Nala Membranes, Inc. Orchid Bioscience, Inc.
951 Aviation Parkway 951 Aviation Parkway 4022 Stirrup Creek Drive 4021 Stirrup Creek Drive
9,820 Renewal
Hires Unique Postings
Novo Nordisk
Other - cGMP Other - cGMP
8,785 New 6,969 New
Q1
Trinity Capital Advisors
Pfizer
Q2 Goldman Sachs
Bio Degree-Awarding Institutions, Metro Area
Regional Office/R&D Lab
GSK
Ummino Synoligo
5,680 Sublease 4,509 Expansion
Q1 Q1
Goldman Sachs
• Campbell University • Central Carolina Community College • Duke University • Durham Technical Community College • Meredith College • North Carolina Central University
• North Carolina State University • Shaw University • St Augustine’s University • University of North Carolina Chapel Hill • Wake Technical Community College • William Peace University
United Therapeutics Co-HQ
101 Southcenter Court
Trinity Capital Advisors
Top NIH-Funded Institutions (2020-2024 1H)
$1.9B Research Triangle Institute
$3.0B Duke University $2.4B University of North Carolina Chapel Hill
2023 3,510 Up 31%
2013 2,678
Annual Life Sciences Degree Completions
Research Contributors JP Price jp.price@cushwake.com
Madelyn Davis Madelyn.davis@cushwake.com
Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook
CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2024 FEBRUARY
San Diego HUB MARKET
View H1 2024 Life Sciences Update
View All Markets
Market Summary
Public & Private Funding (2024 1H)
Rent vs. Vacancy Comparison
Fast Lab Stats
• Anchored in the coastal suburb of Torrey Pines, San Diego’s life sciences core—centered around UC San Diego and private research institutions like Scripps Research, the Salk Institute and the Sanford Burnham Prebys Medical Discovery Institute—continues to strengthen its position as one of North America’s largest life sciences hubs. • Continued growth of the industry has been fueled by public, private and academic collaboration, a talented workforce, a high quality of life and strong anchors, such as Illumina, Pfizer, Bristol Myers Squibb, Eli Lilly and Company, and Takeda. • The region is home to nearly 2,100 life sciences companies, including more than 80 independent and university-affiliated research institutes. • The life sciences cluster generated $56.6 billion in total economic output in 2023, according to Biocom California. • As of the second quarter of 2024, there were 4 msf under construction countywide, 39% of which are preleased, alongside 241,500 sf of conversions. New development has pushed overall vacancy to 16.3% and will continue to rise with an abundance of active construction in the pipeline. • As venture capital investment returns to pre-pandemic levels and sublease availabilities increase, tenants will have an attractive choice in less expensive, move-in-ready space.
10% 12% 14% 16% 18% 20%
$25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75
Company
Deal Type
Completed VC Round $ Raised (MM)
24.1 MSF Market Square Footage $65.69 $ Per SF 16.3% Vacancy 51.1K Total Life Sciences
Avenzo
Early Stage VC Apr 2024 1st Round $223.4 Early Stage VC Mar 2024 3rd Round $175.0 Early Stage VC Mar 2024 2nd Round $157.0 Later Stage VC Apr 2024 3rd Round $132.5 Early Stage VC Apr 2024 3rd Round $132.0 Later Stage VC Feb 2024 6th Round $127.6 Later Stage VC Jun 2024 4th Round $120.0 Later Stage VC Mar 2024 8th Round $119.0
Capstan Therapeutics Engrail Therapeutics Endeavor BioMedicines Alterome Therapeutics
Vacancy Rate
0% 2% 4% 6% 8%
Mainstay Medical
Autobahn Therapeutics
Average Asking Rent $/sf
Rakuten Medical
Contineum Therapeutics (NAS: CTNM) $110.0 BlossomHill Therapeutics Early Stage VC Feb 2024 2nd Round $100.0 IPO Apr 2024
Employment 25.4% Life Sciences Employment 10-Year Growth Rate
2015 2017 2019 2021
2023
Asking Rents
Overall Vacancy
Sublease Vacancy
Representative Investment Sale Transactions (2024 1H)
Representative Life Sciences Companies
Life Sciences Labor: Average Monthly Job Postings and Hires
Address
Type
$ MM RBA SF
Date
Buyer
Lab
3020-3030 Callan Ridge Rd. (65% Interest) 16981 Via Tazon & 11501 Rancho Bernardo Rd.
$153.4 $30.8
173,311 87,516 40,129
Feb 2024 Breakthrough Properties Jan 2024 Dollinger Properties Jan 2024 Phase 3 Real Estate Partners
Company
Type
1,400
Lab / Flex
Illumina
HQ
11025-11035 Roselle St.
Lab
$9.5
1,200
Scripps Research
HQ
1,000
Pfizer
Regional R&D Center
800
Representative Lease Transactions (2024 1H)
BMS/Celgene
Regional R&D Center
Company
Address
Size (SF) New/Renewal
Type
Quarter Landlord
600
Lilly
Regional R&D Center
Pfizer Bayer
11202-11208 El Camino Real 10075 Barnes Canyon Rd. 3020-3030 Callan Ridge Rd. 10255 Science Center Dr.
230,132 New 127,382 New
Lab Lab Lab Lab Lab Lab Lab Lab Lab
Q1
Breakthrough
400
Dexcom
HQ
Q2 Q2 Q2
Alexandria
Vertex
Regional R&D Center
200
Avidity Biosciences
105,511 Sublease
BMS
Takeda
Regional R&D Center
0
BlossomHill Therapeutics ADARx Pharmaceuticals
46,353 New
BioMed Realty
2020 2021
2022
2023
2024
Quidel
HQ
5871 Oberlin Dr.
33,842 Renewal / Expansion Lab
Q1 Q1 Q1 Q1 Q1 Q1
Alexandira Cue Health Alexandria
Hires Unique Postings
Hologic
Regional R&D Center
Natus Medical
6225 Nancy Ridge Dr. 10628 Science Center Dr.
27,450 Sublease 24,705 Renewal
Arcturus Therapeutics
Top NIH-Funded Institutions (2020-2024 1H)
Bio Degree-Awarding Institutions, Metro Area • University of California San Diego • California State University San Marcos • National University (California) • San Diego State University
Annual Life Sciences Degree Completions
AnaBios Shionogi Empirico
1155 Island Ave.
20,000 New 17,718 New
Phase 3
10075 Barnes Canyon Rd. 10955 Vista Sorrento Pkwy.
Alexandria
$302M Salk Institute for Biological Studies
$2.5B University of California, San Diego $976M Scripps Research Institute
2013 3,491 2023 5,344 Up 53%
15,270 Expansion
Breakthrough
Research Contributors Jolanta Campion jolanta.campion@cushwake.com
ustin Balagtas justin.balagtas@cushwake.com
Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook
CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2024 FEBRUARY
HUB MARKET
View H1 2024 Life Sciences Update
San Francisco Bay Area
View All Markets
Market Summary
Public & Private Funding (2024 1H)
Rent vs. Vacancy Comparison
Fast Lab Stats 48.5 MSF Market Square Footage $74.80 $ Per SF 24.0% Vacancy 117.8K Total Life Sciences Employment 61.3% Life Sciences Employment 10-Year Growth Rate
• With over 48 msf of lab inventory encompassing the Bay Area’s two major life sciences hubs (San Francisco Peninsula and East Bay Oakland), the region continues to experience an aggressive industry expansion by its occupancy base. • The region’s highly educated workforce, reinforced by its proximity to elite research institutions such as UC San Francisco, Stanford University and UC Berkeley, has made the Bay Area one of the most elite and active life sciences clusters in the world. • The Bay Area has the world's largest concentration of life sciences venture capital and private equity, which are key in funding companies at all stages. • Biotechnology and pharmaceuticals represent most of the life sciences leasing activity in the market, though the medical device and health tech sectors are extremely active as well. • Past market demand created a continual landlord-favorable market, with developers delivering over 12 msf over the last six years. There are 3.8 msf under construction, and more than 17 msf are in various stages of planning. This current and planned development has been dominated by speculative projects—both ground-up and conversions from office.
$85
28%
Company
Deal Type
Completed VC Round $ Raised (MM) Apr 2024 1 st Round $1,000.0
$75
24%
Xaira Therapeutics Kyverna (NAS: KYTX) Alumis (NAS: ALMS)
Early Stage VC
IPO
Feb 2024
$319.0
Vacancy Rate
$65
20%
Later Stage VC
Mar 2024 5th Round $259.0
$55
16%
Freenome
Later Stage VC
Feb 2024 8th Round $254.0
$45
12%
AltruBio
Later Stage VC May 2024 6th Round $225.0
$35
8%
Alumis (NAS: ALMS) BridgeBio Oncology Therapeutics
IPO
Jun 2024
$210.0
$25 Average Asking Rent $/sf
4%
Later Stage VC May 2024 1st Round $200.0
$15
0%
BioAge
Later Stage VC
Feb 2024 4th Round $194.3
2015 2017 2019 2021
2023
Bluejay Therapeutics
Later Stage VC May 2024 3rd Round $182.0
Asking Rents
Overall Vacancy
Sublease Vacancy
Marea (Biotechnology) Early Stage VC
Jun 2024 2nd Round $160.0
Representative Life Sciences Companies
Life Sciences Labor: Average Monthly Job Postings and Hires
Representative Lease Transactions (2024 1H)
Company Type Gilead Sciences HQ (Foster City) BioMarin Pharmaceutical HQ (San Rafael) Amgen Regional Office (S. San Francisco) Genentech
Company
Address
Size (SF) New/Renewal
Quarter
Landlord
1,000 1,200 1,400 1,600
143,188 Renewal
Q1
Alexandria Real Estate Equities
Insitro
279 Grand Ave, E.
115,061 New Lease 77,616 Renewal 77,130 New Lease 49,845 Renewal 43,500 Sublease 34,789 Sublease 32,370 Renewal 31,370 New Lease 28,597 New Lease
Q2 Q2
IQHQ
Chan Zuckerberg Institute
ELCO Yards
Nevro Corp.
1600 Bridge Pkwy
PGIM / Longfellow
Q1
Blue Rise Ventures/ DRA Advisors
Science Corp.
300 Wind River Way
0 200 400 600 800
Pulmonx
700 Chesapeake 500 Lincoln Dr 5980 Horton St
Q2
Healthpeak
HQ (S. San Francisco)
Cellanome
Q1 Q1
BioMed Realty Trust Wareham Development Healthpeak Properties Redwood Bay Biotech Healthpeak Properties
Regional Office (Berkeley) HQ (Alameda) HQ (Alameda)
Bayer
Kyverna Therapeutics Tenaya Therapeutics Retro Biosciences Pheast Therapeutics
Exelixis
171 Oyster Point Blvd
Q2 Q2 Q2
Penumbra
3150 Bay Rd
2020 2021
2022
2023
2024
Regional Office (S. San Francisco) Regional Office (Foster City)
200 Cardinal Way
Abbvie
Hires Unique Postings
Illumina
Bio Degree-Awarding Institutions, Metro Area • Stanford University • University of San Francisco • University of California Berkeley • Gladstone Institute • Lawrence Livermore Labs • Lawrence Berkeley National Labs • University of California, San Francisco
Annual Life Sciences Degree Completions
Brisol Myers Squibb
Regional Office (Redwood City)
2013 5,156 2023 6,791 Up 32%
Top NIH-Funded Institutions (2020-2024 1H)
$678M University of California Berkeley
$3.4B University of California, San Francisco $2.8B Stanford University
Research Contributors Jason Karbelk jason.karbelk@cushwake.com
Gabriella Sierra gabriella.sierra@cushwake.com
Minh Phan minh.phan@cushwake.com
Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook
CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2024 FEBRUARY
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