H1 2024 Life Sciences Update Market Summaries

Suburban Maryland (I-270 Corridor) HUB MARKET

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Market Summary

Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

Fast Lab Stats 12.4 MSF Market Square Footage $43.37 $ Per SF 15.3% Vacancy 43.3K Total Life Sciences

• Suburban Maryland, referred to as the BioHealth Capital Region (BHCR) has nearly 12.4 msf of laboratory space that benefits from its proximity to federal agencies, including the NIH, National Institute of Allergy and Infectious Diseases (NIAID) and the Food and Drug Administration (FDA). Government funding has fostered innovation and the development of new therapies and technologies, and because of this, the BHCR has remained a top-tier life sciences cluster. • Biotech and pharmaceutical companies have established their presence in this corridor and continue to invest in Maryland. Last year, AstraZeneca expanded its regional presence by nearly 300,000 SF and will invest another $300 million in their manufacturing operations. • Although demand has slowed since Operation Warp Speed accelerated vaccine development during the pandemic, smaller and mid-tiered companies continue to seek value in existing conditions or second generation/sublease space. While leasing activity is not as robust given macro market conditions, nearly 30% of the spec lab space on the market has been leased. • Despite vacancy rates increasing to 15.3%, Suburban Maryland’s supply is not as overbuilt as other top markets, given the overall inventory and size. Rents for R&D space in Montgomery County currently average from $40-$45 psf NNN, and we anticipate rents to hover in this range until current supply and demand equalize.

10% 12% 14% 16% 18%

$25 $27 $29 $31 $33 $35 $37 $39 $41 $43 $45

Company

Deal Type

Completed VC Round $ Raised (MM)

Clasp Therapeutics

Early Stage VC Mar 2024 1st Round $150.0

MaximBio

Grant

Jan 2024

$49.5

Vacancy Rate

RoosterBio

Later Stage VC Mar 2024 5th Round

$6.9

MaximBio

Grant

Feb 2024

$4.4 $3.0 $2.0 $1.7 $1.6

0% 2% 4% 6% 8%

Immunomic Therapeutics Later Stage VC Apr 2024 8th Round

Amplexd Therapeutics

Early Stage VC May 2024 1st Round

Lo Biosciences

Seed Round

Apr 2024 1st Round

Average Asking Rent $/sf

Solaxa

Early Stage VC May 2024 2nd Round

Accelerator/ Incubator

Employment 33.3% Life Sciences Employment 10-Year Growth Rate

2015 2017 2019 2021

2023

Lo Biosciences

Feb 2024

$0.1

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

Address

Size (SF) New/Renewal

Type

Quarter Landlord

Company

Type

1,000 1,200 1,400 1,600 1,800

AstraZeneca Research Facility GlaxoSmithKline Research Facility Arcellx Headquarters ThermoFisher Scientific Regional Office KitePharma (Gilead)

GlaxoSmithKline

9911 Belward Campus Dr

289,912 Renewal

Direct

Q2 CalPERS

AbelZeta

9605 Medical Center Dr

27,639 New Lease

Direct Direct

Q2 Alexandria Real Estate Equities

Theradaptive

7495 New Horizon Way 25,000 New Lease

Q1

Valogic

25 W Watkins Rd

22,930 New Lease

Sublease

Q1

Alexandria Real Estate Equities

Biontech

Regional Headquarters

0 200 400 600 800

Cartesian Therapeutics

7495 New Horizon Way

17,500 New Lease

Direct

Q1

Valogic

Supernus

Headquarters

UBriGene Biosciences

20400 Century Blvd

10,309 New Lease

Direct

Q2 Alexandria Real Estate Equities

Qiagen

US Headquarters

American Type Culture Collection 20440 Century Blvd

9,583 New Lease/ Expansion Direct

Q2 Rock Creek Property Group

MilliporeSigma (BioReliance) Emergent BioSolutions REGENXBIO

Research Facility

Hememics

55 W Watkins Rd

8,000 New Lease

Direct Direct

Q2 Alexandria Real Estate Equities

2020 2021

2022 2023 2024

Headquarters

Cartesian Therapeutics

7495 New Horizon Way

7,842 New Lease

Q2 Valogic

Hires Unique Postings

Headquarters

IntegerBio

704 Quince Orchard Rd

6,228 New Lease

Sublease

Q1

Alexandria Real Estate Equities

• Johns Hopkins University • Montgomery College • University of Maryland - Institute for Bioscience & Biotechnology Research Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions 2013 3,737 2023 4,154 Up 11%

Top NIH-Funded Institutions (2020-2024 1H)

$1.0B University of Maryland Baltimore

$3.8B Johns Hopkins University $2.8B Leidos Biomedical Research, Inc.

Research Contributors Nathan Edwards nathan.edwards@cushwake.com

Chris Whittle christopher.whittle@cushwake.com

Lauren Kraemer lauren.kraemer@cushwake.com

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

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 FEBRUARY