H1 2024 Life Sciences Update Market Summaries

Denver

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Market Summary

Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

5.9 MSF Market Square Footage $23.47 $ Per SF 7.7% Vacancy 8.5K Total Life Sciences Fast Lab Stats

• The rising cost of capital put a damper on investment activity across all major sectors of the commercial real estate market, including life sciences. As a result, there were no life sciences investment sales recorded in the first half of 2024. • Due to economic headwinds facing the industry, life sciences leasing experienced a YOY decline, with the first half of 2024 recording just under 155,000 sf of leasing activity, less than half the activity recorded in the first half of 2023. • While several large users have facilities under construction in the Denver-Boulder market, speculative development remains in its nascency in the area, particularly for lab space. In many cases, life sciences developers are opting to renovate existing flex or industrial space rather than building new facilities. • Despite the decrease in leasing activity, the lack of supply has kept vacancy in check, with overall vacancy dropping 30 basis points (bps) compared to the 2023 year-end total.

20%

$25

Company

Deal Type

Completed VC Round $ Raised (MM)

Enveda Biosciences

Later Stage VC

Jun 2024 3rd Round

$174.0

16%

$20

Synergy Spine Solutions

Vacancy Rate

Later Stage VC

Jan 2024 3rd Round

$30.0

12%

$15

Matter (Services (B2C Non-Financial))

Later Stage VC

Feb 2024 4th Round

$26.0

8%

$10

Eximis Surgical Ajna BioSciences Think Bioscience

Later Stage VC

May 2024 3rd Round Jun 2024 1st Round May 2024 2nd Round Feb 2024 3rd Round

$15.3 $9.0 $6.0 $5.0

Seed Round Seed Round

4%

$5

Average Asking Rent $/sf

Flagship Biosciences Later Stage VC Eon (Healthcare Technology Systems) Later Stage VC

0%

$0

Employment 36.0% Life Sciences Employment 10-Year Growth Rate

2015 2017 2019 2021

2023

Jan 2024 3rd Round

$3.0

Asking Rents

Overall Vacancy

Sublease Vacancy

KromaTiD

Later Stage VC

Jan 2024 4th Round

$2.1

GelSana

Grant

Apr 2024

$1.3

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Representative Lease Transactions (2024 1H)

Company Medtronic

Type

Company

Address

Size (SF) New/Renewal Type

Quarter

Landlord

- 100 200 300 400 500 600 700 800 900

Undisclosed

111000 Broomfield Lane 2425 - 2555 55th Street

68,676 New 48,000 New 17,500 New 13,321 New

Direct

Q1

Morgan Stanley

Regional Office Research Facility

DNA Technologies

Expansion

Q2 Q2 Q2

Washington Capital Management Washington Capital Management Washington Capital Management

Pfizer

Hyde Engineering & Consulting 1450 Infinite Drive

Direct Direct

Eli Lilly Research Facility Agilent Technologies Research Facility Terumo BCT HQ AGC Biologics Research Facility Biodesix HQ KBI Biopharma R&D and Manufacturing Enveda Biosciences HQ

Bioloomics

2425 - 2555 55th Street

2020 2021

2022

2023 2024

Hires Unique Postings

Bio Degree-Awarding Institutions, Metro Area • University of Colorado – Denver • University of Colorado – Boulder • Colorado State University • Colorado School of Mines

Annual Life Sciences Degree Completions 2013 961 2023

$1.5B University of Colorado Denver $250M University of Colorado $166M National Jewish Health Top NIH-Funded Institutions (2020-2024 1H)

1,511 Up 57%

Research Contributors Cara Stamp cara.stamp@cushwake.com

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

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 FEBRUARY