H1 2024 Life Sciences Update Market Summaries

Boston HUB MARKET

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Market Summary • Greater Boston remains an increasingly dominant center of the life sciences industry, with a consistent international audience and an influx of scientists looking to contribute to the thriving environment. • The high concentration of R&D firms in Cambridge, particularly around Kendall Square, coupled with the region’s robust pool of life sciences talent due to its proximity to Harvard, MIT, and other world-renowned institutions, make it one of the most preeminent locations for life sciences activity in the world. • Greater Boston is home to top life sciences firms from around the world, including Takeda, Vertex, Biogen, Moderna and Foundation Medicine. • Year-to-date (YTD) construction completions were nearly double the project completions during the first half of 2023. More than 2.8 million square feet (msf) is still under construction and anticipated to deliver by year-end 2024. The total expected construction deliveries of 5.4 msf for 2024 will decline year-over-year (YOY), from 6.7 msf of deliveries in 2023. • New demand for both existing and new buildings slowed in the first half of 2024, totaling 450,833 sf of leasing activity, down 71% when compared to the first half of 2023. Of the 2.6 msf of construction deliveries in the first half of 2024, only 38% are currently leased. Projects that are delivered to the market mostly vacant have pushed the overall vacancy rate to its five-year high of 26.6%.

Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

Fast Lab Stats

$15 $25 $35 $45 $55 $65 $75 $85 $95 $105

0% 3% 6% 9% 12% 15% 18% 21% 24% 27%

Company

Deal Type

Completed VC Round $ Raised (MM)

44.5 MSF Market Square Footage $90.39 $ Per SF 26.6% Vacancy 109.1K Total Life Sciences

Zenas BioPharma

Later Stage VC May 2024 4th Round $200.2 Later Stage VC Mar 2024 4th Round $181.9

Sionna

Vacancy Rate

Cerevance Later Stage VC Apr 2024 5th Round $163.0 Obsidian Therapeutics Later Stage VC Mar 2024 3rd Round $160.5 FogPharma Later Stage VC Feb 2024 5th Round $145.0 Keros Therapeutics (NAS: KROS) IPO Jan 2024 $140.0 Rapport Therapeutics (NAS: RAPP) IPO Jun 2024 $136.0 NextPoint Early Stage VC Feb 2024 3rd Round $122.5

Average Asking Rent $/sf

Fractyl Health (NAS: GUTS)

Employment 98.4% Life Sciences Employment 10-Year Growth Rate

2015 2017 2019 2021

2023

IPO

Feb 2024

$110.0

Asking Rents

Overall Vacancy

Sublease Vacancy

Inari

Later Stage VC Jan 2024 6th Round $103.0

Representative Investment Sale Transactions (2024 1H)

Address

Type

$/psf

$ MM $1.66 $1.66

RBA SF

Date

Buyer

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Office Office

300 Binney St 290 Binney St

$2,049.38 $2,049.38

240,000 March 2024 NBIM 570,000 March 2024 NBIM

Company Alnylam

Type

1,000 1,500 2,000 2,500 3,000

HQ HQ

Biogen

Bristol Myers Squibb

Regional HQ

Representative Lease Transactions (2024 1H)

Foundation Medicine HQ Moderna Tx HQ Novartis

Company

Address

City

Size (SF) New/Renewal

Type

Quarter Landlord/ Sublandlord

ADA Forsyth

Direct Direct

100 Chestnut Street Somerville

76,000 New Lease

Q1 Q1

North River Leerink

Regional HQ Regional HQ Regional HQ Regional HQ

0 500

BPG Bio

300 Third Avenue Waltham 70,000 New Lease

Lincoln Property Company

Pfizer Sanofi

Treeline Biosciences

500 Arsenal Street

Watertown 67,362 Renewal/Expansion Direct

Q2 Alexandria Real Estate Equities

2020 2021

2022

2023

2024

Tiax

35 Hartwell Avenue Lexington

46,700 Renewal

Direct Direct Direct Direct Direct

Q1 Q1 Q1 Q1 Q1 Q1

Anchor Line Partners Anchor Line Properties North River Company

Takeda Ph Vertex Ph

Hires Unique Postings

ANDE

266 Second Avenue Waltham 46,040 Renewal

HQ

Nest.Bio

100 Chestnut Street Somerville

41,000 New Lease

$2.7B Massachusetts General Hospital $1.7B Brigham and Women’s Hospital $1.0B Boston Children’s Hospital Top NIH-Funded Institutions (2020-2024 1H)

Bio Degree-Awarding Institutions, Metro Area • Boston University • University of Massachusetts Boston • Harvard University • MIT • Boston College • Northeastern University • Tufts University • Massachusetts College of Pharmacy and Health Sciences

Annual Life Sciences Degree Completions 2013 4,887

TScan Therapeutics

830 Winter Street

Waltham 25,472 New Lease Cambridge 25,000 Renewal

Morgan Stanley BioMed Realty

BioNTech

40 Erie Street

Nexo Tx & Aleksia Tx Incendia Therapeutics

500 Forge Street

Watertown Cambridge

21,251 New Lease 16,972 New Lease

Sublease

Boylston Properties

1 Canal Park

Direct

Q2 Breakthrough Properties

2023 7,015 Up 44%

Research Contributors Riley McMullan riley.mcmullan@cushwake.com

Nicole Salamone nicole.salamone@cushwake.com

Katie Mahoney kathleen.mahoney@cushwake.com

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

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 FEBRUARY