H1 2024 Life Sciences Update Market Summaries

Los Angeles & Orange County

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Market Summary

Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

Fast Lab Stats 8.6 MSF Market Square Footage $39.91 $ Per SF 2.8% Vacancy 42.0K Total Life Sciences Employment 14.8% Life Sciences Employment 10-Year Growth Rate Fast Lab Stats

• With approximately 8.6 msf of regional lab inventory, the Los Angeles and Orange County life sciences market has emerged as a growth market with great potential. Though smaller in scale compared to its national contemporaries, a surplus of aged and obsolete industrial flex and office space provides a hardy supply of renovation opportunities to meet the growing demand. • As of mid-year 2024, nearly 5,700 life sciences institutions called Los Angeles and Orange County home and employed over 42,000 people. The local economic output of the life sciences industry is estimated to be over $113.3 billion. • Many of the submarkets across Los Angeles and Orange County are viable locations for the life sciences industry due to their proximity to world-class institutions or because they are anchored in areas with significant workforce tailored toward the industry. These clusters include South Bay (El Segundo), LA North (Thousand Oaks), Tri-Cities (Pasadena), the Westside (Culver City, Santa Monica, et al.) and Orange County. By midyear 2024, most of the new leasing activity was concentrated in southern and coastal submarkets in Orange County, such as Irvine and Tustin. • As of July 2024, the Los Angeles and Orange County market was one of the largest beneficiaries of funding from the National Institutes of Health (NIH), totaling nearly $1.9 billion—or 32% of the NIH funding throughout the state of California. This was largely due to the region being home to several world class research and educational institutions, such as City of Hope, Caltech, USC, UCLA and Cal Poly Pomona.

0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

$10 $15 $20 $25 $30 $35 $40 $45

Company

Deal Type

Completed VC Round $ Raised (MM)

CG Oncology (NAS: CGON)

IPO

Jan-2024

$380.0

TORL BioTherapeutics Later Stage VC

Apr-2024 3rd Round

$158.3

Vacancy Rate

ImmPACT Bio

Later Stage VC Later Stage VC Later Stage VC Early Stage VC Early Stage VC Later Stage VC Early Stage VC

Apr-2024 2nd Round $139.8 Feb-2024 3rd Round $135.0

Latigo Bio

Angitia Biopharmaceuticals

Jan-2024 4th Round

$86.0

Midi Health

Mar-2024 4th Round Jan-2024 3rd Round Apr-2024 1st Round May-2024 3rd Round

$60.0 $50.0 $33.0 $30.0

Average Asking Rent $/sf

$0 $5

Sonorous NV AccessHope

2015 2017 2019 2021

2023

Immunis

Asking Rents

Overall Vacancy

Sublease Vacancy

AtaCor Medical

Later Stage VC

Apr-2024 4th Round

$28.0

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 R&D

2,500

Inari Medical

510 Technology Dr. 173 Technology Dr. 26630 Agoura Rd. 15771 Red Hill Ave.

27,197 New Lease 15,446 New Lease

Sublease

Q2

The Irvine Company The Irvine Company Arden Realty, Inc. Rexford Industrial

Kite Pharma

EnChannel Medical

Direct Direct

Q1

Top NIH-Funded Institutions (2020-2024 1H) $2.7B University of California Los Angeles $1.5B University of Southern California $879M University of California-Irvine Pharmaceutical Edwards Life Sciences Medical Devices Masimo Medical Devices Sanofi/Genzyme Pharmaceutical Celgene R&D Xencor R&D Baxter Pharmaceutical Seigfreid Pharmaceutical Grifols R&D Amgen

2,000

HRL Laboratories

15,080 Renewal

Q2

1,500

bioMérieux (Tempo CC)

13,775 New Lease 8,652 New Lease

Sublease

Q1 Q1

Velocity Clinical Research 1127 Wilshire Blvd.

Direct

Boulevard Investment Group

1,000

500

0

2020 2021

2022 2023 2024

Hires Unique Postings

Bio Degree-Awarding Institutions, Metro Area • California Institute of Technology • University of California – Los Angeles • University of Southern California • University of California – Irvine • California State Polytechnic U, Pomona

Annual Life Sciences Degree Completions

2013 8,535 2023 14,960 Up 75%

Research Contributors Dan Hunker Daniel.hunker@cushwake.com

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

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LIFE SCIENCES UPDATE | 2024 FEBRUARY