H1 2024 Life Sciences Update Market Summaries

Chicago

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Market Summary

Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

8.2 MSF Market Square Footage $47.77 $ Per SF 20.5% Vacancy 40.0K Total Life Sciences Employment 7.2% Life Sciences Employment 10-Year Growth Rate Fast Lab Stats

• Life sciences companies are taking note of Chicago’s world-class research universities, talent pipeline, robust network of existing companies, and its competitive cost compared to other major life sciences markets. • Chicago’s life sciences ecosystem has seen unprecedented growth, with substantial capital infusion and the development of funding and mentorship programs, like the University of Chicago Innovation Fund and Chicago Biomedical Consortium’s Entrepreneurial Fellows program. Chicago was chosen as the second location of the Chan Zuckerburg Biohub Network, an investment that will propel development and job growth. • Notable recent developments include Trammell Crow’s Evanston Labs, located at 710 Clark Street in suburban Evanston, which delivered in the second quarter of 2024. The 175,000-sf development is near Northwestern University. Hyde Park Labs, located at 5201 S. Harper Ave., is currently under construction. The 302,000-sf facility is near the University of Chicago’s campus and is being developed by Beacon Capital Partners and Trammell Crow Company. • Market fundamentals continued to improve through mid-2024. Due to recent construction completions over the last 12 months, overall vacancy trended upward—to 20.5% from 20.2% last year. Tenant demand remains high, with 123,000 of new leasing activity over the last 12 months.

$ Raised (MM)

25%

$55

Company

Deal Type

Completed

Type

Cour

Later Stage VC Jan 2024 1st Round

105.0

$50

20%

Advanced Medicine Ptnrs.

Early Stage VC Jun 2024 1st Round

60.0

$45

Vacancy Rate

15%

Vivacelle Bio

Later Stage VC Feb 2024 3rd Round Later Stage VC Apr 2024 4th Round Later Stage VC Feb 2024 7th Round Later Stage VC Jan 2024 3rd Round

20.0 14.0

$40

Nucleai

10%

Surgimatix

3.0 2.2

$35

Novian Health Acorn Genetics BiomeSense Galaxy Labs Inomagen Therapeutics

5%

$30

Seed Round

Jan 2024 1st Round

1.9

Average Asking Rent $/sf

Grant Angel

Mar 2024

2.0 0.8

0%

$25

2015 2017 2019 2021

2023

Apr 2024 Angel

Asking Rents

Overall Vacancy

Sublease Vacancy

Later Stage VC Apr 2024 2nd Round

0.2

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

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

Mattiq

400 North Aberdeen

17,377 New Lease

N/A

Q1

Trammell Crow Company

AbbVie Abbott

HQ HQ HQ

Baxter International Baxalta Incorporated

Regional Office Horizon Therapeutics North American HQ Astellas Pharma North American HQ Luminex Regional Office Pfizer Regional Office Lundbeck HQ Sysmex North American HQ

- 200 400 600 800

2020 2021

2022 2023 2024

Hires Unique Postings

Bio Degree-Awarding Institutions, Metro Area • University of Chicago • Northwestern University • University of Illinois Chicago • Illinois Institute of Technology • Loyola University Chicago • DePaul University

Annual Life Sciences Degree Completions

Top NIH-Funded Institutions (2020-2024 1H) $1.7B Northwestern University at Chicago $1.1B University of Chicago $695M University of Illinois at Chicago

2013 7,882 2023 7,305 Down 7%

Research Contributors Gregory Rogalla gregory.rogalla@cushwake.com

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

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 FEBRUARY