H1 2024 Life Sciences Update Market Summaries

Toronto

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Market Summary

Public & Private Funding (2024 1H)

8.0 MSF Market Square Footage 0.7% Vacancy 28.7K Total Life Sciences Fast Lab Stats

• Canada’s largest city is the epicenter of the Ontario Life Sciences Corridor. Anchored by the downtown MaRS Discovery District, the life sciences cluster in Mississauga and the McMaster Innovation Park in Hamilton, the sector benefits from a replenishing pool of highly educated professionals. This is attributed to Ontario's status as a hub for research and innovation, with four of Canada’s top 10 research universities—University of Toronto, McMaster University, University of Ottawa and University of Western Ontario—contributing to the talent pool. • By mid-2024, the availability of space in the life sciences sector tightened further, with the vacancy rates falling to 0.7% from 1.6% at the end of 2023, a 90-bp decline. This trend is largely due to a significant portion of life sciences properties being owner-occupied and virtually no vacancy in third-party properties. • The economic climate remains restrictive, with venture capital funding opportunities still limited. This has become a significant obstacle for Toronto's life sciences sector, as demand has largely come from early-stage R&D companies. Without adequate capital, these smaller firms are primarily focused on managing their limited resources, making do with their current premises. On the other hand, large-scale life sciences firms are still exploring expansion opportunities in the Toronto market. Recently, AstraZeneca acquired Fusion Pharmaceuticals, a leading clinical-stage biopharmaceutical company specializing in cancer therapeutics. • Despite tepid demand in the current capital-constrained environment, developers remain optimistic about Toronto's growth potential and are considering new sites for life sciences developments. Currently underway is 77 Wade Ave., scheduled for delivery in mid-2025, which will add 155,000 sf to the city’s life sciences inventory. This development will be Toronto’s first speculative life sciences building, designed to meet the needs of smaller users with a proposed life sciences hotel model that features turnkey suites and shared common areas.

Company

Deal Type

Completed Jun 2024 Mar 2024 Jun 2024 Mar 2024 Apr 2024 Apr 2024 Apr 2024 Mar 2024 Mar 2024

VC Round 3rd Round 3rd Round 2nd Round 1st Round 1st Round 2nd Round 4th Round

$ Raised (MM)

Acorn Poppy Mesosil

Later Stage VC

$8.1 $5.0 $3.7 $1.6 $1.2 $0.7 $0.5 $0.1 $0.1

Seed Round Seed Round Seed Round Seed Round

Noa Therapeutics

Intellistem

ImmVue Therapeutics

Later Stage VC Later Stage VC

Poppy

Employment 24.7% Life Sciences Employment 10-Year Growth Rate

AuX Labs

Accelerator/Incubator

HDAX Therapeutics

Seed Round

4th Round

Representative Investment Sale Transactions (Q3 2023- Q2 2024)

Address

Type

$ MM RBA SF

Date

Buyer

400 Iroquois Shore Road Manufacturing

$19.2

75,000 Q1 2024 ControlChem Canada

Life Sciences Labor: Average Monthly Job Postings

Representative Life Sciences Companies

Company

Type

300

Pfizer Canada

Canada Regional Office

250

Representative Lease Transactions (Q3 2023- Q2 2024)

Hoffmann-La Roche

Canadian HQ

200

Bayer Inc

Regional Office

Company

Address

Size (SF) New/ Renewal Type 20.648 New Lab

Quarter Landlord

AstraZeneca Regional Office/R&D Hub Abbott Multiple Locations Multiple Locations - Canadian GlaxoSmithKline Canadian HQ/Research Sanofi Pasteur Regional Office Deep Genomics HQ Notch Therapeutics HQ Bluerock Therapeutics Regional Office Resilience Biotechnologies Regional Office

150

SPEC Labs

2599 Speakman Drive

Q1 2024 Slate Asset Management

100

PCI Pharma Services Canada Inc.

977 Century Drive

29,496 Renewal

Manufacturing Q4 2023 Dream Summit Industrial (Ontario) Inc.

50

0

2020 2021

2022

2023

2024

• McMaster University • Queen’s University • Lawrence College • University of Toronto • University of Waterloo • University of Windsor • Western University • York University Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions 2011 2,470 2021 3,295 Up 33%

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

$20M University Health Network

$16M Centre For Addiction and Mental Health

$13M Hospital for Sick Children

Juana Ross juana.ross@cushwake.com Research Contributors

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

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 FEBRUARY