Life Sciences 2020: The Future is Here

MARKET SUMMARY

10.7 MSF MARKET SQUARE FOOTAGE FAST LAB STATS

• The Washington, D.C. Metro region is home to one of the most vibrant life sciences clusters in the country. Demand is booming along the I-270 Corridor and into Frederick County which keeps vacancy rates low. • Suburban Maryland is a unique submarket due to its close proximity to relevant federal agencies, education/research institutions, and a talented labor force. Due to these drivers, Montgomery and Frederick Counties continue to make their way up the list of top-tier life sciences hubs. • Maryland has been coined the BioHealth Capital Region (BHCR), striving to be a top three life sciences hub by 2023. Large companies experiencing growth continue to invest in Maryland or have expanded operations along the I-270/Corridor. In 2018, RegenxBIO signed a 132,000-sf lease in the heart of the life sciences district and just recently expanded by another floor, bringing it to full building occupancy of 175,000 sf once the building delivers in 2020. Supernus Pharmaceuticals moved into its new 136,000-sf facility at 9715 and 9717 Key West Avenue at the end of the year. The life sciences market in the I-270 corridor has also catered to companies experiencing rapid growth including Neuraly and Cellular Biomedicine Group. • As demand ticks up and biotech companies continue to experience explosive growth, landlords are working to accommodate space by converting existing office buildings with favorable base building conditions. For example, Rock Creek Property Group broke ground in September on Bio @ 700 QO, a 121,000-sf best-in-class R&D/ manufacturing facility that will deliver May 2020. The building was formerly an electronics lab that made sense to convert to life sciences given its premier location and “ideal lab bones.” • Given these market conditions, rents are rising and more conversions and build-to-suit opportunities are forthcoming.

AVERAGE FULL SERVICE RENT $43.17

9K TOTAL EMPLOYEES +13.5% TOTAL EMPLOYEES SINCE 2010

(SUBURBAN MARYLAND)

4.1% VACANCY

TOP LIFE SCIENCES COMPANIES

LIFE SCIENCES TALENT POOL: 21,000

COMPANY

TYPE

Number of Persons 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000

AstraZeneca

Pharmaceutical

GlaxoSmithKline PLC

Biotech/ Pharmaceutical

Otsuka America Pharmaceutical

Pharmaceutical

The Emmes Corp

Pediatric Research

Average Annual Growth Rate 2001-2018: 1.4%

Supurnus Pharmaceutical

Pharmaceutical

BioReliance

Pharma & Biopharma Manufacturing

WASHINGTON D.C. METRO MacroGenics Inc. Biopharma Meso Scale Diagnostics Biotech Novavax 2001 2003 2005 2007 2009 2011 2013 2015 Source: EMSI

2017

2019

Biotech Emergent BioSolutions Inc. Biopharma

Source: Washington Business Journal

TOP NIH-FUNDED INSTITUTIONS, 2014-2018

$682M

GEORGE WASHINGTON UNIVERSITY $464M

GEORGETOWN UNIVERSITY $237M

LEIDOS BIOMEDICAL RESEARCH, INC.

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