Life Sciences Update | 2022 October

FAST FACTS 5

Raleigh / Durham

Market Summary

Public & Private Funding (2022)

Rent vs. Vacancy Comparison

Fast Lab Stats

• North Carolina, one of the world's largest life sciences clusters, is home to 790 life sciences companies--634 of which are located in the Research Triangle region in Raleigh/Durham. • A robust talent pool and pipeline from top-tier research universities in the region, as well as a low cost of living, make Raleigh-Durham one of the premier life sciences hubs in the United States. Significant job announcements and investment into the region have come from a diverse sector of life sciences companies. Enzyvant, Inc, a gene and cell-based therapy company announced a $34.0 million investment in the region with a new manufacturing facility. Also, existing companies in the Research Triangle renewed leases, with Kymanox resigning its existing office space and Medicago expanding and extending its commitment to manufacturing in RTP. • Demand for life sciences space remains strong, leading to numerous proposed projects (new construction and conversions) totaling approximately 10.6 msf, in addition to the 12.5 msf of existing inventory. Within the 10.6 msf of total possible pipeline opportunities, 1.6 msf is currently under construction. Some of the proposed product is rumored to be speculative, while other properties labeled life sciences could end up being built as another property type. • Rental rates have remained relatively stable over the last quarter. However, because of limited availability, a dwindling number of sites for major life sciences projects and rising construction costs, rates are expected to continue increasing in Raleigh-Durham.

Company

Deal Type

Completed Type $ Raised (MM)

$35

10% 12% 14% 16% 18% 20% 22% 24%

12.5 MSF Market Square Footage $31.31 $ Per SF 13.1% Vacancy 34.1K Total Life Sciences

Xilis

Early Stage VC Jul 2022

VC

$89.0

$30

Vestaron

Later Stage VC May 2022 VC

$82.0

Vacancy Rate

$25

Biomason

Later Stage VC Feb 2022 VC

$65.0

Inceptor Bio

Early Stage VC Mar 2022 VC

$37.7

$20

Locus Biosciences Later Stage VC May 2022 VC

$35.0

$15

Targan

Later Stage VC May 2022 VC

$35.0

0% 2% 4% 6% 8%

$10

Addyi

Later Stage VC May 2022 VC

$25.1

Average Asking Rent $/sf

restor3d

Later Stage VC Apr 2022 VC

$23.0

$5

Entegrion

Later Stage VC Jul 2022

VC

$19.9

$0

Employment 42.8% Life Sciences Employment 10-Year Growth Rate

Gemelli Biotech

Early Stage VC Jun 2022

VC

$18.9

2015 2016 2017 2018 2019 2020 2021 2022

Asking Rents

Overall Vacancy

Sublease Vacancy

Representative Investment Sale Transactions (2022)

Address

Type

$ MM

RBA SF

Date Buyer

The Labs 104 TW Alexander Dr

Flex

$80.0

70,132

Jan 2022 Alexandria Real Estate

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Company

Type

1,000 1,200

Novartis (Avexis)

Other – cGMP

Representative Lease Transactions (2022)

Q2 Solutions (IQVIA)

HQ

0 200 400 600 800

Company

Address

Size (SF) New/Renewal

Type

Quarter Landlord

Seqirus

Other – cGMP

Park Point 4001 NC 54

ThermoFisher

Regional Office & cGMP

Analog Devices

150,000 New Lease

Office

Q1

Trinity Capital Advisors

Wolfspeed

40 Moore Dr

100,000 New Lease

Office

Q2

Alexandria Real Estate

LabCorp

HQ

Medicago

7 Triangle Dr

96,626 Renewal/Expansion Lab

Q2

Alexandria Real Estate

Fujifilm Diosynth Biotechnologies

HQ

2018

2019 2020 2021

2022

ElevateBio

Durham.ID 300 Morris St

63,000 New Lease

Office

Q2

Longfellow

Hires Unique Postings

Novo Nordisk Pharmaceutical Industries

Other - cGMP

TBC 4025 Stirrup Creek Dr

TPG Real Estate Finance Trust Inc

Vestaron

35,802 New Lease

Flex

Q2

Bio Degree-Awarding Institutions, Metro Area

Pfizer

Other - cGMP

Restor3D

Park Point 4001 NC 54

50,225 New Lease

Office

Q1

Trinity Capital Advisors

• •

•

Campbell University Central Carolina Community College Durham Technical Community College Meredith College North Carolina Central University Duke University

North Carolina State University

GSK

Regional Office/R&D Lab

Newcastle North 1015 Swabia Ct

Hewlett-Packard Company

44,945 Renewal

Office

Q1

Drawbridge Realty

• • •

Shaw University

Enzyvant

101 Southcenter Ct

25,972 New Lease

Flex/Lab

Q2

Trinity Capital Advisors

United Therapeutics

Co-HQ

• •

St Augustine’s University

University of North Carolina Chapel Hill Wake Technical Community College

Office/La b

Confidential

601 Keystone Dr

20,114 Renewal

Q1

Alexandria Real Estate

Top NIH-Funded Institutions (2018-2022)

• •

•

Brightseed Bio

8 Davis Dr

20,000 New Lease

Lab

Q2

Alexandria Real Estate

$2.7B Duke University $2.4B

$1.0B Research Triangle Institute

•

William Peace University

Newcastle North 1035 Swabia Ct

Kriya Therapeutics

18,287 Expansion

Lab

Q1

Longfellow

2020 3,013 Up 39%

2010 2,171

Annual Life Sciences Degree Completions

JP Price jp.price@cushwake.com Research Contributor

University of North Carolina Chapel Hill

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

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LIFE SCIENCES UPDATE | 2022 OCTOBER