Life Sciences Update | 2022 October

FAST FACTS 5

Greater Los Angeles

Market Summary

Public & Private Funding (2022)

Rent vs. Vacancy Comparison

Fast Lab Stats

• With approximately 8.5 msf of regional lab inventory, the Greater Los Angeles life sciences market has emerged as a growth market with great potential. Though smaller in scale compared to its national contemporaries, a surplus of aged and obsolete industrial flex and office space provides a hardy supply of renovation opportunities to meet the growing demand. • Many of the submarkets across Greater Los Angeles are viable locations for the life sciences industry due to their proximity to world class institutions or because they are anchored in areas with significant workforce tailored towards the industry. These clusters include South Bay (El Segundo), LA North (Thousand Oaks), Tri-Cities (Pasadena), the Westside (Culver City, Santa Monica, etc.) and Orange County. In 2022, a large portion of activity was concentrated in the LA North, LA West, South Bay and Tri-Cities markets. • Los Angeles life sciences companies continue to move on low-rise/flex product, which is more desirable and can be adapted to fit their unique needs (i.e., floor size, loading capabilities, ceiling heights, ability to vent and above standard power). • More developers are contemplating intensive renovations/space makeovers as well as new ground up projects to attract companies in the life sciences sector looking to commit to larger space requirements. • Asking rents continue to rise and set new records for newer space, ranging from $60 NNN psf to $72 NNN psf on an annual basis. Due to economic headwinds, there is a growing risk that recent growth can be tempered over the next few years.

Company

Deal Type

Completed Type $ Raised (MM)

$60

6%

Fast Lab Stats 8.5 MSF Market Square Footage $54.75 $ Per SF 1.8% Vacancy 41K Total Life Sciences

Cloudbreak Pharmaceutical

Later Stage VC Jan 2022

VC

$130.0

$55

Path

Early Stage VC Jan 2022

VC

$56.0

Vacancy Rate

$50

4%

Baylx

Early Stage VC Apr 2022 VC

$47.1

$45

Vascular Dynamics

Later Stage VC May 2022 VC

$20.0

AiVita Biomedical

Early Stage VC Mar 2022 VC

$19.0

$40

2%

TriFlo Cardiovascular Early Stage VC Jun 2022

VC

$13.8

$35

Holoclara

Later Stage VC Jul 2022

VC

$11.5

Average Asking Rent $/sf

$30

Pictor Labs

Seed Round May 2022 VC

$7.6

Amydis

Later Stage VC Apr 2022 VC

$5.7

Employment 10.6% Life Sciences Employment 10-Year Growth Rate

0%

$25

2015 2016 2017 2018 2019 2020 2021 2022

Celestial Therapeutics

Angel

Jul 2022

VC

$0.9

Asking Rents

Overall Vacancy

Sublease Vacancy

Representative Investment Sale Transactions (2022)

Address

Type

$ MM RBA SF

Date

Buyer

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

5005 McConnell Ave

Lab (R&D)

$58.7

56,306

Mar 2022

NexCore Group/Nuveen

30401 & 30501 Agoura Rd Office (20% lab)

$29.7

114,570

Mar 2022

Gemdale USA

Company

Type

3,000

2201 Corporate Center Dr

Lab (R&D)

$15.7

76,252

Jan 2022

Cruzan

Kite Pharma

R&D

2,500

Amgen

Pharmaceutical

Representative Lease Transactions (2022)

Edwards Life Sciences

Medical Devices

2,000

Masimo

Medical Devices

Company

Address

Size (SF) New/Renewal

Type

Quarter

Landlord

1,500

Sanofi/Genzyme

Pharmaceutical

Armata Pharmaceuticals 5005 McConnel Ave

55,000 New

Direct

Q1

Hatch Spaces

1,000

Celgene

R&D

Terray Therapuetics

750 E Royal Oaks

38,000 New

Direct

Q2

Samuelson & Fetter

500

Xencor

R&D

Confidential

2101 Corporate Center Dr

12,000 New

Direct

Q2

Alexandria Real Estate Equities, Inc.

0

Baxter

Pharmaceutical

Confidential

2101 Corporate Center Dr

11,000 New

Direct

Q2

Alexandria Real Estate Equities, Inc.

2018

2019

2020 2021

2022

Seigfreid

Pharmaceutical

Eli Lily (Protomer Technologies)

Hires Unique Postings

26 Euclid

10,000 New

Direct

Q2

Alexandria Real Estate Equities, Inc.

Grifols

R&D

Appia Bio

6160 Bristol

6,000 New

Expansion

Q2

Alexandria Real Estate Equities, Inc.

Bio Degree-Awarding Institutions, Metro Area California Institute of Technology University of California – Los Angeles University of Southern California University of California – Irvine California State Polytechnic U, Pomona • • • • •

Annual Life Sciences Degree Completions

Top NIH-Funded Institutions (2018-2022) $2.6B University of California Los Angeles $1.4B University of Southern California $780M University of California-Irvine

Capsida

1300 Rancho Conejo

4,000 New

Direct

Q2

Alexandria Real Estate Equities, Inc.

Parallel Bio

5380 Alhambra

4,000 New

Direct

Q2

Hatch Spaces

2010 6,811

2020 14,644 Up 115%

Research Contributor

Eric A. Kenas eric.kenas@cushwake.com

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

22

/ CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2022 OCTOBER