Life Sciences Update | 2022 October

FAST FACTS 5

Boston

Market Summary • Big Pharma continues to drive the life sciences market, with notable leases coming from Takeda, AstraZenca, and Vertex. All three leases were signed in Q2 2022 for a total of 1.5 msf. • Greater Boston has become an increasingly dominant center of the life sciences industry, with a continued regular international audience as well as an influx of scientists looking to contribute to the growing environment. • Nearly 13.9 msf of lab product is either under construction or in preconstruction phases, with 48% being preleased. Total inventory of lab product is likely to exceed 40.0 msf by 2025. • A lack of readily available, developable land in Kendall Square, the biotechnology industry center, led to the formation of new industry area hotspots. These include Boston’s Seaport District and numerous areas within Watertown, with continued growth in Waltham, Somerville and Lexington. • Sublease space has become increasingly prominent in the past six months. With growing uncertainty surrounding the current economic conditions, several life sciences companies are pausing hiring, and seeking alternative uses for their space.

Public & Private Funding (2022)

Rent vs. Vacancy Comparison

Fast Lab Stats

$95

10%

Company

Deal Type

Completed Type $ Raised (MM)

32.4 MSF Market Square Footage $80.32 $ Per SF 9.1% Vacancy 94K Total Life Sciences

Tessera

Later Stage VC Feb 2022

VC

$300.0

$85

8%

HilleVax (NAS: HLVX) IPO

Apr 2022

IPO

$230.0

Vacancy Rate

$75

Amylyx (NAS: AMLX) IPO

Apr 2022

IPO

$216.0

6%

$65

CinCor Pharma (NAS: CINC)

IPO

Jan 2022

IPO

$193.6

$55

4%

LifeMine

Later Stage VC Mar 2022

VC

$175.0

$45

ConcertAI

Later Stage VC Mar 2022

VC

$150.0

2%

Saliogen Therapeutics Early Stage VC May 2022 VC

$132.3

Average Asking Rent $/sf

$35

Be Biopharma

Early Stage VC Apr 2022

VC

$130.0

0%

$25

Korro Bio

Early Stage VC Jan 2022

VC

$116.0

Employment 80.6% Life Sciences Employment 10-Year Growth Rate

2015 2016 2017 2018 2019 2020 2021 2022

PepGen (NAS: PEPG) IPO

May 2022 IPO

$108.0

Asking Rents

Overall Vacancy

Sublease Vacancy

Representative Investment Sale Transactions (2022)

Address

Type

$/psf

$ MM

RBA SF

Date Buyer

100 Binney St*

Lab

$2,356

$ 1,020.0

432,932

Apr 2022 CBRE Global Investors

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

451 D St*

Lab

$1,483

$708.0

477,132

Jun 2022 GI Partners

Company

Type

Cambridgeside**

Lab

$2,278

$815.0

357,734

Jan 2022 Alexandria RE

1,000 1,500 2,000 2,500 3,000 3,500

Biogen

HQ

300 Third St*

Lab

$2,656

$237.0

131,963

Jan 2022 CBRE Global Investors

bluebird bio

HQ

Representative Lease Transactions (2022)

Bristol Myers Squibb

Regional HQ

CRISPR Tx

HQ

Company

Address

City

Size (SF) New/Renewal

Type

Quarter

Landlord

Moderna Tx

HQ

Takeda

585 Third St

Cambridge

600,000

New

Lab

Q2 BiodMed Realty

Novartis

Regional HQ

AstraZeneca

290 Binney St

Cambridge

570,000

New

Lab

Q2 Boston Properties

0 500

Pfizer

Regional HQ

Vertex

22 Drydock Ave

Boston

344,000

New

Lab

Q2 Related Beal

Sanofi

Regional HQ

Eli Lilly

15 Necco St

Boston

334,000

New

Lab

Q1

Alexandria

2018

2019 2020 2021

2022

Takeda Ph

Regional HQ

Intellia

840 Winter St

Waltham

139,984

New

Lab

Q1

Alexandria

Hires Unique Postings

Vertex Ph

HQ

Vericel Corporation 25 Network Dr

Burlington

125,749

New

Lab

Q1

Nordblom

Kymera

Arsenal on the Charles

Watertown

100,624

New

Lab

Q1

Alexandria

$2.5B Massachusetts General Hospital $1.7B Brigham and Women’s Hospital $942M Boston Children’s Hospital Top NIH-Funded Institutions (2018-2022)

Bio Degree-Awarding Institutions, Metro Area • Boston University • University of Massachusetts Boston • Harvard University • MIT • Boston College • Northeastern University • Tufts University • Massachusetts College of Pharmacy and Health Sciences

Annual Life Sciences Degree Completions 2010 3,926

Enanta

Arsenal on the Charles #2 Watertown

73,037

New

Lab

Q2 Alexandria

T2 Biosystems

290 Concord Rd

Billerica

70,125

New

Lab

Q1

Farley White

Sartorious

200 Donald Lynch Blvd

Marlborough

56,174

New

Lab

Q2

Minardi Limited

Avencell

500 Forge St

Watertown

55,776

New

Lab

Q1

Boylston Properties

2020 6,429 Up 64%

Research Contributors Matthew Giordano matthew.giordano@cushwake.com

*Recapitalization ** Portfolio Sale

Will Mitchell will.mitchell@cushwake.com

Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook

19

/ CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2022 OCTOBER