H1 2024 Life Sciences Update Market Summaries

San Diego HUB MARKET

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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