H1 2024 Life Sciences Update Market Summaries

New York

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Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

Market Summary • The life sciences industry has expanded its footprint in New York, with state and city incentives encouraging developers to build labs for medical research. In 2022, New York City and the state of New York announced a partnership to develop a $1.6 billion Science Park and Research Campus (SPARC) in Kip’s Bay to expand the city’s life sciences and healthcare sectors. In 2023, the city and state of New York pledged an additional $10 million each, with $250 million from the Chan Zuckerberg Initiative for a new biomedical research hub with a focus on early disease prevention, detection and treatment. • Investors and developers worldwide continue to grow their presence in New York, as it has one of the most educated and diverse talent pools in the nation, along with first-class academic and medical institutions and premier venture capital (VC) ecosystems. • VC funding has slowed, but significant deals continue to transact. Drug discovery was a key area of focus for Formation Bio and LB Pharmaceuticals, which were among the top funded companies in 2024. • New York City has emerged as a viable life sciences market, with 3.9 msf of developed stock. One building delivered in the second quarter of 2024 at 2226 Third Ave., adding nearly 200,000 sf of space to the market. Over the next few years, life sciences supply will grow by almost 550,000 sf when the expected addition at 550 E. 29th St. is completed.

Fast Lab Stats

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

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

Company

Deal Type

Completed VC Round $ Raised (MM)

3.9 MSF Market Square Footage $99.27 $ Per SF 41.4% Vacancy 87.1K Total Life Sciences Employment 11.9% Life Sciences Employment 10-Year Growth Rate

Formation Bio

Later Stage VC Jun 2024 5th Round $372.0

EvolutionaryScale LB Pharmaceuticals Ajax Therapeutics Elion Therapeutics

Seed Round

Jun 2024 2nd Round $142.0

Vacancy Rate

Later Stage VC Jan 2024 5th Round $110.7 Later Stage VC May 2024 3rd Round $95.0 Later Stage VC Jun 2024 2nd Round $81.0

Verse Medical Later Stage VC Apr 2024 2nd Round $42.0 Glyphic Biotechnologies Early Stage VC Feb 2024 3rd Round $33.2 Deep Origin Early Stage VC Mar 2024 1st Round $25.5 Graviton BioScience Early Stage VC Feb 2024 3rd Round $25.0 PreciseDx Early Stage VC Apr 2024 2nd Round $20.7

0% 5%

Average Asking Rent $/sf

2015 2017 2019 2021

2023

Asking Rents

Overall Vacancy

Sublease Vacancy

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

18,120 New Lease 6,000 New Lease 7,302 New Lease

Sublease

430 East 29 th Street

Alexandria Real Estate Equities Alexandria Real Estate Equities Alexandria Real Estate Equities

Pfizer

HQ

Firmenich

Q2 Q2

Direct

Nilo Therapeutics 430 East 29 th Street

Bristol-Myers Squibb

HQ

Sublease

30-02 48 th Avenue

Q1

Insprina

Royalty Pharma

HQ

Erbitux

HQ

Eli Lilly HQ Intra-Cellular Therapies HQ Lexeo Therapeutics HQ Schodinger HQ Kallyope HQ

0 500

2020 2021

2022 2023 2024

Hires Unique Postings

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

Bio Degree-Awarding Institutions, Metro Area • Columbia University • New York University • Fordham University • City College of New York • New York Institute of Technology • Weill Cornell Medical College

Annual Life Sciences Degree Completions

$2.7B Columbia University Health Sciences $2.1B New York University School of Medicine $2.1B Icahn School of Medicine at Mount Sinai

2013 9,682 2023 12,301 Up 27%

Research Contributors Reed Hatcher reed.hatcher@cushwake.com

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

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 FEBRUARY