Life Science: Great Promise & Rapid Growth

MARKET SUMMARY

FAST OFFICE STATS

The Greater Toronto Area (GTA) is recognized as a top life science hub, employing more than 36,000 people in medical research, biotechnology, medical devises, pharmaceuticals, and more. A key location for industry giants such as Pfizer, Roche, Johnson & Johnson and GlaxoSmithKline, the sector contributes more than $2 billion to the local economy and has seen tremendous growth in the last few years. Toronto is home to the Discovery District, a 2.5-square kilometer (.97-square mile) research park in the heart of the downtown core. Many world-famous hospitals and research institutions are located here, along with the original home of the MaRs Discovery District, which aims to “help innovators change the world.” MaRs announced in September 2018 that it will open a second location on Toronto’s Waterfront to accommodate demand for space, which has reached an all-time high as more global talent, venture capital, and tech firms are attracted to the city. In the first three quarters of 2018, some $265 million was invested in 36 life science-related companies (PWC). The University of Toronto has one of the largest medical schools in North America and produces among the most peer-reviewed medical research papers in the world. Given such tremendous location attributes, along with the city’s commitment to grow the sector, federal and provincial grants, and tax incentives, the future for the GTA’s life science sector looks very bright.

177 MSF OFFICE MARKET SQUARE FOOTAGE OVERALL OFFICE ASKING RENT (PSF) $23.47 30K TOTAL LIFE SCIENCE EMPLOYEES 6.5%

TORONTO

OVERALL VACANCY

TOP TEN LIFE SCIENCE EMPLOYERS (BY REVENUE)

RENT VS. VACANCY COMPARISON

$16 $17 $18 $19 $20 $21 $22 $23 $24 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Asking Rent, $ PSF (NNN) Overall Vacancy Rate

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

COMPANY

TYPE

Pfizer

Pharmaceutical

Roche

Pharmaceutical/Diagnostics

Johnson & Johnson

Pharmaceutical/Medical Devices

Novartis

Pharmaceutical

GlaxoSmithKline

Pharmaceutical

Merck

Pharmaceutical

Abbott Laboratories Pharmaceutical/Medical Devices

Statistics currently reported reflect office market, not lab market

Eli Lilly

Pharmaceutical

Sanofi

Pharmaceutical

Bayer

Pharmaceutical

TOP THREE NIH-FUNDED INSTITUTIONS

CENTRE FOR ADDICTION AND MENTAL HEALTH $4.3M

UNIVERSITY OF TORONTO $4.1M

UNIVERSITY HEALTH NETWORK $3.2M

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