H1 2024 Life Sciences Update Market Summaries

Raleigh-Durham HUB MARKET

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Market Summary

Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

Fast Lab Stats

• North Carolina is home to one of the world's largest life sciences clusters, with 830 life sciences companies—657 of which are in Research Triangle Park in Raleigh-Durham. • A robust talent pool and pipeline from top-tier research universities in the region, as well as a low cost of living, make Raleigh-Durham one of the premier life sciences hubs in the United States. Significant job announcements and investment into the region have come from a diverse sector of life sciences companies. Novo Nordisk announced a $4.1 billion investment in Johnston County, and Kyowa Kirin announced a $530 million investment in Lee County. • In addition to the 12.2 msf of existing life sciences inventory, there were 9.7 msf in the pipeline, with 887,000 under construction at midyear 2024. Some of the proposed product is speculative, while other properties that are labeled life sciences could be built as other property types. • Rental rates have remained relatively stable over the last few quarters. However, because of newly delivered premium product, rates are expected to increase in Raleigh-Durham. • Raleigh-Durham is a major recipient of NIH funding. The top five funded institutions in the market are with Duke University, Univ of North Carolina Chapel Hill, Research Triangle Institute, Family Health International and North Carolina State University.

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

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

Company Completed VC Round $ Raised (MM) Areteia Therapeutics Early Stage VC Feb 2024 1st Round $425.0 restor3d Later Stage VC Jun 2024 6th Round $70.0 Elo Life Systems Early Stage VC Jan 2024 2nd Round $20.5 Avalo Early Stage VC May 2024 3rd Round $12.0 Avicenna Biosciences Early Stage VC Feb 2024 3rd Round $6.0 Dignify Therapeutics Seed Round Jan 2024 2nd Round $3.0 inSoma Bio Seed Round May 2024 2nd Round $2.7 Open Book Extracts Later Stage VC Mar 2024 6th Round $2.7 Lindy Biosciences Later Stage VC Mar 2024 3rd Round $1.7 Focal Medical Later Stage VC Mar 2024 3rd Round $1.0 Deal Type

12.2 MSF Market Square Footage $38.18 $ Per SF 24.9% Vacancy 37.3K Total Life Sciences

Vacancy Rate

Average Asking Rent $/sf

$0 $5

Employment 53.7% Life Sciences Employment 10-Year Growth Rate

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 1,200 1,400

Novartis (Avexis)

Other – cGMP

Solvias

2400 Perimeter Park Drive

50,598 New

Q2 Longfellow Real Estate Partners Q2 Longfellow Real Estate Partners

Lab Lab Lab Lab Lab Lab Lab Lab Lab Lab Lab

Q2 Solutions (IQVIA) HQ Seqirus

EPL

615 Davis Drive

42,545 Renewal

0 200 400 600 800

Other – cGMP

Traitology

104 TW Alexander Drive 4022 Stirrup Creek Drive

30,300 New 24,597 New

Q1

Alexandria Real Estate Equities, Inc.

Regional Office & cGMP

ThermoFisher

Ionna

Q2 Goldman Sachs

Zoetis LLC

4222 Emperor Blvd

12,764 Renewal

Q1

Longfellow Real Estate Partners

LabCorp

HQ

Fujifilm Diosynth Biotechnologies

Crosslink Orthopedics, LLC 175 Southport Drive

11,416 New

Q2 Trinity Capital Advisors Q2 Trinity Capital Advisors

HQ

2020 2021

2022

2023 2024

Raytheon Company Nala Membranes, Inc. Orchid Bioscience, Inc.

951 Aviation Parkway 951 Aviation Parkway 4022 Stirrup Creek Drive 4021 Stirrup Creek Drive

9,820 Renewal

Hires Unique Postings

Novo Nordisk

Other - cGMP Other - cGMP

8,785 New 6,969 New

Q1

Trinity Capital Advisors

Pfizer

Q2 Goldman Sachs

Bio Degree-Awarding Institutions, Metro Area

Regional Office/R&D Lab

GSK

Ummino Synoligo

5,680 Sublease 4,509 Expansion

Q1 Q1

Goldman Sachs

• Campbell University • Central Carolina Community College • Duke University • Durham Technical Community College • Meredith College • North Carolina Central University

• North Carolina State University • Shaw University • St Augustine’s University • University of North Carolina Chapel Hill • Wake Technical Community College • William Peace University

United Therapeutics Co-HQ

101 Southcenter Court

Trinity Capital Advisors

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

$1.9B Research Triangle Institute

$3.0B Duke University $2.4B University of North Carolina Chapel Hill

2023 3,510 Up 31%

2013 2,678

Annual Life Sciences Degree Completions

Research Contributors JP Price jp.price@cushwake.com

Madelyn Davis Madelyn.davis@cushwake.com

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

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 FEBRUARY