Life Sciences 2020: The Future is Here

MARKET SUMMARY

FAST LAB STATS

• Nearly 800 life sciences companies employ more than 36,000 people in the Puget Sound region, with the highest concentration in Seattle and its surrounding South Lake Union and Bothell 1 areas. • The life sciences industry is anchored by renowned research institutions such as the University of Washington (UW), the Fred Hutchinson Cancer Research Center and the Allen Institute for Brain Science in addition to non-profit research organizations such as the Bill & Melinda Gates Foundation and the Pacific Northwest Research Institute (PNRI). • Washington’s life sciences sector continues to flourish, with a 13% increase in employment from 2014 to 2017 2 . • Biotechnology and non-profit research companies dominate the Seattle market, with medical device companies a close second 3 . • A growing alliance between life sciences and tech companies has set Seattle apart as an emerging hub, e.g. Microsoft’s $45M investment in Adaptive Biotechnologies 4 . • Local colleges have invested in life sciences in order to grow the workforce and sustain the industry. • Seattle’s life sciences vacancy has steadily decreased during the current cycle and is currently 3%. Vacancy has been at or below 5% the past five years. The South Lake Union (SLU) development has ramped up with Alexandria Real Estate Equities (ARE) leading the charge. ARE owns 1.6 million square feet (msf) of lab and office space in Seattle, with plans to develop an additional 1.4 msf in SLU. An 800,000-sf Mercer Mega Block life sciences campus was approved by the Seattle City Council in September for a 2023 completion 5 . Adaptive Biotechnologies preleased ARE’s 100,000-sf project due in 2021.

11 MSF MARKET SQUARE FOOTAGE AVERAGE ASKING RENT (PER SF) $40.38 8K TOTAL EMPLOYEES +114% TOTAL EMPLOYEES SINCE 2010 4.9% VACANCY

SEATTLE

TOP LIFE SCIENCES COMPANIES

LIFE SCIENCES TALENT POOL: 11,896

10,000 10,500 11,000 11,500 12,000

COMPANY

TYPE

Juno Therapeutics (C/O Celgene)

Big Pharma

Bio-Rad Laboratories, Inc.

Med Device

Seattle Genetics

Biotech

Number of Persons 8,000 8,500 9,000 9,500

NanoString Technologies Biotech Adaptive Biotechnologies Biotech Sanofi

Average Annual Growth Rate 2001-2018: 2.2%

Big Pharma Big Pharma

Omeros

Aptevo Therapeutics

Biotech

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

AGC Biologics Biotech Alder BioPharmaceuticals Pharmaceutical Development

Source: EMSI

TOP THREE NIH-FUNDED INSTITUTIONS

UNIVERSITY OF WASHINGTON $2.2B

FRED HUTCHINSON CANCER RESEARCH CENTER $1.3B

SEATTLE CHILDREN'S HOSPITAL $218M

1  Source: https://www.lifesciencewa.org/page/2019EconomicImpactReport 2 Source: https://www.lifesciencewa.org/news/436159/NEW-Life-Science-Washington-Economic-Impact-Report.htm 3 Source: https://www.lifesciencewa.org/page/2019EconomicImpactReport 4 Source: https://www.bizjournals.com/seattle/news/2019/11/22/seattle-has-potential-as-a-biotech-hub-but-more.html 5 Source: https://www.geekwire.com/2019/alexandria-doubles-decades-long-seattle-biotech-bet-mercer-mega-block-deal/

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