Life Sciences 2020: The Future is Here

MARKET SUMMARY

FAST LAB STATS

• Boston’s life sciences sector benefits from an incredible talent pipeline with MIT and Harvard and from its position as a global leader in healthcare with Massachusetts General Hospital, Boston Children’s Hospital, Brigham & Women’s Hospital and Dana Faber Cancer Institute, among others. This has led to the construction of a large volume of lab inventory. • The market is dominated by a mix of both Big Pharma and small start-ups. Lab incubators help to grow small companies that have historically grown organically and/or have been acquired by the larger players. The war for talent has forced deep pocketed, venture- capital-backed, smaller companies to continue to locate in Cambridge even though rents have become prohibitively expensive for many. • The large concentration of lab inventory is very attractive to life sciences companies. Additionally, the market draws a large percentage of venture capital and NIH funding. The Cambridge market in particular is a magnet for VC funding, trailing only the state of California in venture capital investment. • There is plenty of life sciences supply under construction or proposed. The lab market could grow by 55% to 32 msf by 2024. While the market is incredibly tight, it is one of the few markets in the country that is building aggressively enough to placate demand.

20.6 MSF MARKET SQUARE FOOTAGE

AVERAGE GROSS RENT $108 39K TOTAL

EMPLOYEES +53% TOTAL EMPLOYEES

BOSTON

SINCE 2010 0.8% VACANCY

LIFE SCIENCES TALENT POOL: 36,196

TOP LIFE SCIENCES COMPANIES

Number of Persons 14,000 16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000

COMPANY

TYPE

Pfizer Inc.

Big Pharma

Novartis

Big Pharma

TESARO, a GSK company

Big Pharma

Sanofi

Big Pharma

AbbVie

Big Pharma

Average Annual Growth Rate: 2001-2018: 4.5%

Takeda Pharmaceuticals

Big Pharma

Thermo Fisher Scientific Inc.

Med Device

Amgen

Big Pharma

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

Bristol-Myers Squibb

Big Pharma

Source: EMSI

Biogen

Big Pharma

TOP NIH-FUNDED INSTITUTIONS, 2014-2018

MASSACHUSETTS GENERAL HOSPITAL $1.9B

BRIGHAM AND WOMEN’S HOSPITAL $1.8B

HARVARD MEDICAL SCHOOL $993M

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