Life Science: Great Promise & Rapid Growth

95 MSF OFFICE MARKET SQUARE FOOTAGE OVERALL OFFICE MARKET AVERAGE RENT (PER SF) $16.15 56K TOTAL LIFE SCIENCE FAST OFFICE STATS

MARKET SUMMARY

Montreal is a well-established global hub for life science, thanks in part to the Montreal InVivo – a non-profit group formed in 2007 that fosters innovation and the development of sector-focused private and public organizations. Today, InVivo encompasses more than 620 organizations, and generates annual revenues of more than $5.6 billion. Beyond this dynamic cluster, the city’s overall life science industry employs more than 56,000 people in some 650 organizations. Leading industry employers include drug discovery and development companies, biotechnology tools and services companies, governmental and research institutes, medical device companies, and education institutions. Current lab stock is clustered around the downtown, Laval, Saint-Laurent and West Island areas, with major manufacturing facilities located predominantly in the West End. Montreal’s life science sector, which continues to attract a substantial amount of venture capital and government funding, also benefits from generous R&D tax credits and low corporate tax rates.

EMPLOYEES 11.4% OVERALL VACANCY

RENT VS. VACANCY COMPARISON

MONTREAL TOP TEN LIFE SCIENCE EMPLOYERS (BY REVENUE) COMPANY TYPE

$12.00 $12.50 $13.00 $13.50 $14.00 $14.50 $15.00 $15.50 $16.00 $16.50 $17.00

10% 12% 14%

Pfizer

Pharmaceutical

0% 2% 4% 6% 8%

Roche

Pharmaceutical

Sanofi

Pharmaceutical

GlaxoSmithKline

Pharmaceutical

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Asking Rent, $ PSF (NNN) Overall Vacancy Rate

Novartis

Pharmaceutical

Abbvie

Pharmaceutical

SUBMARKET STATS

Merck

Pharmaceutical

OVERALL AVG. ASKING RENT

OVERALL INVENTORY

OVERALL VACANCY

AstraZeneca

Pharmaceutical

Downtown South

$18.99

12,004,760 7.40%

Gilead

Pharmaceutical

Teva

Pharmaceutical

West Island

$14.51

2,884,439 17.90%

St-Laurent

$14.10

6,795,193

20.70%

TOP THREE NIH-FUNDED INSTITUTIONS

MCGILL UNIVERSITY HEALTH CENTER RESEARCH INSTITUTE $2.7M

MCGILL UNIVERSITY $1.5M

UNIVERSITY OF MONTREAL HOSPITAL $657K

18