H1 2024 Life Sciences Update Market Summaries

HUB MARKET

View H1 2024 Life Sciences Update

San Francisco Bay Area

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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