Life Sciences Update | 2022 October

FAST FACTS 5

Philadelphia

Market Summary

Public & Private Funding (2022)

Rent vs. Vacancy Comparison

Fast Lab Stats

• Among a dearth of new lab completions, the Philadelphia market has remained undersupplied. To date, very few life sciences companies have put recently acquired space on the sublease market. • Tenants in the market list continues to grow as transactions anticipated to be completed early in 2022 remain uncommitted. This is anticipated to continue for many companies until valuations recover, the IPO market returns, or other sources of equity enter the market. • Current providers of prebuilt labs—BioLabs, B-Labs and CIC—continue to show absorption and high occupancy. CIC recently completed a major construction project at 3675 Market Street, effectively doubling the number of benches to over 400. Upon completion of the project, the additional suites were 85.0% leased. For the first time in a long while, CIC has some vacancy allowing much needed growth capacity for new and existing tenant companies. • A bright star in the capital markets has been seed and early-stage investing. It has been resilient when compared with decreases in available capital coming from the growth set of capital (i.e., late-stage venture and private equity). Based on a June 2022 report from Crunchbase, seed funding increased 11.0% as of May 2022 ($3.1B) from May 2021 ($2.8B). This is anticipated to yield increased demand for these types of facilities.

Company

Deal Type

Completed Type $ Raised (MM)

$10 $15 $20 $25 $30 $35 $40 $45 $50

12%

19.2 MSF Market Square Footage $47.15 $ Per SF 0.5% Vacancy 47.4K Total Life Sciences Employment 8.8% Life Sciences Employment 10-Year Growth Rate

Enterin

Later Stage VC 2/10/2022 VC

$24.7

10%

Cayaba Care

Early Stage VC 5/19/2022 VC

$12.0

Vacancy Rate

ViTToria Biotherapeutics

Seed Round

6/7/2022 VC

$10.0

8%

Avstera Therapeutics Seed Round

5/20/2022 VC

$3.6

6%

Prolocor

Early Stage VC 1/31/2022 VC

$1.6

4%

Chimeron Bio

Later Stage VC 3/10/2022 VC

$0.8

Average Asking Rent $/sf

2%

$0 $5

0%

2017 2018 2019 2020 2021 2022

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

110,000

1/21/2022 Eurofins

795 Horsham Rd

Lab conversion

$14.5

Company

Type

121,458

4/8/2022 Griffith Properties

425 Privet Rd

Lab conversion

$12.1

1,000 1,200 1,400 1,600

AstraZeneca North America HQ Century Therapeutics Research Facility/HQ Amicus Therapeutics Research Facility/HQ GlaxoSmithKline Research Facility J&J/Janssen Research Facility/ Regional HQ Teva Pharmaceuticals US HQ Endo Research Facility Merck Research Facility/HQ Incyte Research Facility

155,200

7/12/2022 Hines

466 Devon Park Dr

Lab conversion

$57.0

Representative Lease Transactions (2022)

0 200 400 600 800

Company

Address

Size (SF) New/Renewal

Type

Quarter Landlord

FlowMetric

727 Norristown Rd

26,200 New Lease

Office/Lab

Q1 2022 MRA Group

Biolabs

601 Walnut St

30,000 Expansion

Office/Lab

Q1 2022 Keystone Property Group

SmartLabs

3201 Cuthbert St

117,000 New Lease

Office/Lab

Q2 2022 Drexel

2018

2019

2020 2021

2022

Exelixis

250 King of Prussia Rd

28,173 New Lease

Office/Lab

Q2 2022 Brandywine Realty Trust

Roche/Spark Therapeutics

HQ/Research Facility/Manufacturing

Hires Unique Postings

Century Therapeutics

225 North 38th St

90,000 Expansion

Office/Lab

Q2 2022 Ventas

Merck

727 Norristown Rd

77,000 New Lease

Office/Lab

Q2 2022 MRA Group

Top NIH-Funded Institutions (2018-2022)

Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions

West Pharmaceuticals Services

250 King of Prussia Rd

24,855 New Lease

Office/Lab

Q2 2022 Brandywine Realty Trust

• • • • •

Drexel University Temple University

Madrigal Pharmaceuticals 200 Barr Harbor Dr

18,375 Sublease

Office/Lab

Q1 2022 Brandywine Realty Trust

$2.8B University Of Pennsylvania $707M Children’s Hospital Of Philadelphia $392M Temple University Of The Commonwealth

2010 3,498 2020 4,883 Up 40%

University of Delaware University of Pennsylvania St. Joseph’s University - University of the Sciences

Research Contributor

Michael Hanes michael.hanes@cushwake.com

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

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/ CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2022 OCTOBER