H1 2024 Life Sciences Update Market Summaries

Seattle

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Market Summary

Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

Fast Lab Stats

• Over 150 companies in the life sciences industry are headquartered in the Puget Sound region, primarily in the biotechnology and drug discovery fields. • Nearly $160 million was raised in venture capital funding for local firms in 2024. In April 2024, publicly traded Danish drugmaker Genmab acquired Seattle-based biotech firm ProfoundBio in a $1.8 billion deal. • The region’s life sciences inventory is mainly situated in two submarkets: Lake Union in downtown Seattle and Bothell in the Eastside. Lake Union features 5.3 msf of inventory, 18.5% vacancy, and triple net rents ranging from $70-90 psf. Bothell comprises 2.5 msf of inventory, 13.1% vacancy, and triple net rents in the low- to mid-$20s (and in the $40-$50s for high-end lab spaces.) • The Bothell submarket had strong interest from biotech tenants, with Bristol Myers Squibb (114,000 sf), IonQ (101,000 sf), Sana Biotechnology (80,000 sf), and Immunome (29,000 sf) all signing significant deals. Investors have also eyed Bothell for capital and expansion; Since 2020, Alexandria Real Estate Equities has invested over $483 million in 1.6 msf of space in the submarket. • Average asking rents jumped exponentially in the market due to the pandemic. Over 1.3 msf of new lab development and office-to-lab conversions have been added to the market since 2021; the higher asking rents, especially for new developments in downtown Seattle, created a notable spike in asking rents YOY. Notable conversions include Boren Labs, 330 Yale, and Unison Elliott Bay in downtown Seattle, and Sana Biotechnology's 80,000-sf renovation project in Bothell, which will serve as a manufacturing facility. • Due to increasing subleases and waning demand, several new life sciences developments have been put on hold indefinitely, including BioMed's T6 Innovation Center. In April 2024, Alexandria’s 701 Dexter, which has been on hold since September 2023, resumed work and is slated for a 2025 delivery.

$70

21%

Company

Deal Type

Completed VC Round $ Raised (MM)

9.8 MSF Market Square Footage $60.32 $ Per SF 16.9% Vacancy 23.8K Total Life Sciences Employment 91.2% Life Sciences Employment 10-Year Growth Rate

$60

18%

ProfoundBio RareCyte LumiThera Healionics

Later Stage VC Feb 2024 4th Round $112.0 Later Stage VC Jun 2024 8th Round $20.0

$50

15%

Vacancy Rate

Later Stage VC May 2024 5th Round Later Stage VC Feb 2024 7th Round Later Stage VC Feb 2024 2nd Round Later Stage VC Jun 2024 5th Round

$8.1 $5.5 $4.6 $4.6 $2.0 $1.5 $0.7 $0.6

$40

12%

$30

9%

Proniras Immusoft

$20

6%

NephroDI Therapeutics Later Stage VC Jun 2024 1st Round

$10

3%

Average Asking Rent $/sf

Phase Genomics Ora Biomedical Spoke Sciences

Grant

Mar 2024

$0

0%

Seed Round Seed Round

Jan 2024 3rd Round Apr 2024 3rd Round

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

0 200 400 600 800 1,000

Fred Hutchinson Cancer Research Center Bristol Myers Squibb

Bristol Myers Squibb Philips Medical Systems – Bldg C

87,080 New

Life Science

Q2 Phillips Medical Systems

HQ

Alexandria Ctr for Advanced Tech – Monte Villa

Research Facility

IonQ

36,033 New

Life Science

Q1

Alexandria Real Estate Equities

Seagen

HQ

Freedom eCommerce Monte Villa Ctr

26,073 Sublease

Life Science

Q2 Ditty Properties

Allen Institute

Research Facility

Benaroya Research Institute AGC Biologics Adaptive Biotechnologies

Research Facility

Research Facility

HQ

2020 2021

2022

2023

2024

NanoString Technologies Gilead Sciences

Hires Unique Postings

HQ

Regional Office

Sana Biotechnology

HQ

$2.5B University of Washington $2.2B Fred Hutchinson Cancer Research Center Top NIH-Funded Institutions (2020-2024 1H)

Bio Degree-Awarding Institutions, Metro Area • University of Washington • Seattle Pacific University • Seattle University

Annual Life Sciences Degree Completions

2013 2,479 2023 2,599 Up 5%

$492M Seattle Children’s Hospital

Research Contributors Brian Cagayat brian.cagayat@cushwake.com

Mckinley Fox-Cowart mckinley.foxcowart@cushwake.com

Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 FEBRUARY