Life Sciences 2020: The Future is Here

MARKET SUMMARY

FAST LAB STATS

• Chicago and its suburbs host some of the world’s leading pharmaceutical and biotechnology companies including Astellas, Abbvie, Horizon Therapeutics, and Fresnius Kabi. It is also home to medical device and diagnostics companies such as Abbott and Baxter. Chicago is attractive to the life science industry for two key reasons. First, Chicago boasts a multitude of life sciences-oriented research and educational institutions that provide a consistent pipeline of talent and innovation. Second, Chicago’s cost of doing business is significantly lower than peer cities like New York, Boston, and Los Angeles. • Along with major industry presence, Chicago is also an incubator market, with many life sciences startups spinning out of university research initiatives such as Apintyx, Exicure and Pyxis Oncology. The market is seeing rising investment to create better infrastructure for these start-ups, with developers planning to build state-of-the-art spaces to attract them. For example, Rosalind Franklin University created the Innovation and Research Park, a 100,000-sf facility dedicated to research labs, industry, and startups. • While lab/R&D development activity has been stagnant for several years, tightening the market, momentum will pick up over the next decade. Local developers have released plans to create districts focused on biomedical research and life sciences in order to attract a more companies, startups and labs, and substantially expand Chicagoland’s life sciences real estate footprint. Life sciences clusters are planned near the University of Chicago in Hyde Park, Illinois Medical District, Lincoln Park, Bronzeville, and Fulton Market – Chicago’s hottest neighborhood. • Chicago, as the #1 metro for venture capital returns, continues to be a hotbed of venture capital. Chicago developer Sterling Bay created a new investment arm, Prysm Life Sciences, that plans to put millions of dollars into emerging life sciences companies.

5.4 MSF MARKET SQUARE FOOTAGE OVERALL OFFICE MARKET AVERAGE RENT (PER SF) $27.00 3K TOTAL LIFE SCIENCES EMPLOYEES

CHICAGO

+54%

TOTAL EMPLOYEES SINCE 2010

1.3% OVERALL VACANCY

TOP LIFE SCIENCES COMPANIES

LIFE SCIENCES TALENT POOL: 16,224

16,500

COMPANY

TYPE

Pfizer, Inc.

Big Pharma

16,000

Abbvie Inc

Big Pharma

15,500

Abbott Laboratories

Big Pharma

Baxter International

Med Device/Biotech

15,000

Takeda Pharmaceuticals

Big Pharma

Number of Persons 14,000 14,500

Average Annual Growth Rate 2001-2018: 0.5%

Medline Industries, Inc

Med Device

Hill-Rom Holdings, Inc. Med Device Fresenius Kabi Pharmaceuticals Big Pharma Horizon Therapeutics Big Pharma Vyaire Med Device Astellas Big Pharma Hollister Med Device

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

Source: EMSI

TOP THREE NIH-FUNDED INSTITUTIONS

NORTHWESTERN UNIVERSITY AT CHICAGO $1.2B

UNIVERSITY OF CHICAGO $858M

UNIVERSITY OF ILLINOIS AT CHICAGO $568M

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