Life Science: Great Promise & Rapid Growth

MARKET SUMMARY

8 MSF MARKET SQUARE FOOTAGE AVERAGE RENT (PER SF) $34.83 127.5K TOTAL EMPLOYEES* 8.8% VACANCY FAST LAB STATS

The San Francisco’s East Bay life science market is a growing and dynamic mix of long-established companies such as Bayer and Novartis, UC Berkeley affiliations such as Lawrence Berkeley National Labs, and exciting venture-funded research companies including Zymergen, Bolt Threads, Gritstone Oncology, Arcus Biosciences and Pivot Bio. Many of these companies have originated locally either through their executive teams who reside in the East Bay, or through their research at the University of California, Berkeley. UCB’s impact as a driver of the local life science community has been long- standing with their affiliated incubators, such as QB3, paving the way for continued growth in the area. Given the scarcity of existing lab space in the Bay Area, several of the QB3 companies located in other markets, such the Mission Bay/ UCSF facility, have spun-off and established their first facilities in the Berkeley/Emeryville lab cluster as well. The premium East Bay life science markets have existing lab that is less than 10% vacant with NNN rents approaching $50.00/sf and in the case of new construction, north of $60.00/sf/year.

* Employment for San Francisco, Peninsula and Oakland combined

TOP TEN LIFE SCIENCE EMPLOYERS

RENT VS. VACANCY COMPARISON

$14 $16 $18 $20 $22 $24 $26 $28 $30 $32 $34 $36 $38 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Asking Rent, $ PSF (NNN) Overall Vacancy Rate

32%

COMPANY

TYPE

28%

Bayer

Pharmaceutical

24%

Medical Devices

Bio-Rad

20%

Zymergen

Biotechnology

16%

12%

Novartis

Pharmaceutical

8%

Advanced Cell Diagnostics

Biotechnology

4%

Exelixis

Pharmaceutical

0%

Abbott Labs

Pharmaceutical

Johnson & Johnson SAN FRANCISCO EAST BAY Medical Devices Abaxis Biotechnology

Grifols Diagnostics Solutions

Biotechnology

TOP THREE NIH-FUNDED INSTITUTIONS

UNIVERSITY OF CALIFORNIA, SAN FRANCISCO $640M

STANFORD UNIVERSITY $504M

UNIVERSITY OF CALIFORNIA, BERKELEY $128M

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