Life Sciences Update | 2022 October

FAST FACTS 5

Seattle

Market Summary

Public & Private Funding (2022)

Rent vs. Vacancy Comparison

Fast Lab Stats

• Over 150 companies in the life sciences industry are headquartered in the Puget Sound region, primarily in the biotechnology and drug discovery fields. • Though venture funding to biotech startups has slowed following a peak in 2021, a good number of deals (totaling $351.3 million) have occurred in 2022. Seattle biotech firm Kineta announced its intention to go public through a merger with Boston-based Yumanity Therapeutics, which will close by the end of the year. Merck is in talks to acquire local biotech giant Seagen for $40 billion, a deal that may close by end of Q3 2022. • The majority of the region’s life sciences inventory is situated in the Lake Union submarket. Due to low supply and high demand, some newly delivered office projects (1930 Boren and 330 Yale) were converted to life sciences. Unison Elliott Bay is a current 300,000-sf office-to-life-sciences conversion that will become available in early 2023. There is another 3.9 msf of life sciences in the planning stages in or near the submarket. Rents in this submarket are typically in the $70-$90 NNN range, with vacancy at 1.6%. • With historically low vacancies and ever-rising rents in the Lake Union submarket, the suburban submarkets have seen significant leasing activity and office-to-lab conversion, especially in Bothell, where the office markets have rents averaging in the low $30s NNN and vacancy close to 8%. Sana Biotechnology has made a serious commitment to Bothell, leasing 80,000 sf that will replace its Fremont, CA manufacturing facility. • The Bellevue and Renton submarkets are also poised for growth, with Alexandria purchasing a large development site in a prime location in Bellevue and SECO’s 1.4-msf Southport West project in Renton in the planning stages.

Company

Deal Type

Completed Type $ Raised (MM)

8%

$25 $30 $35 $40 $45 $50 $55 $60 $65 $70

6.9 MSF Market Square Footage $63.93 $ Per SF 3.8% Vacancy 19.4K Total Life Sciences Employment 49% Life Sciences Employment 10-Year Growth Rate

Curevo Vaccine InduPro (Biotechnology)

Later Stage VC Feb 2022

VC

$60.0

Early Stage VC Feb 2022

VC

$60.0

6%

Vacancy Rate

AltPep

Early Stage VC Jul 2022 Later Stage VC Feb 2022 Later Stage VC Mar 2022 Seed Round Jun 2022 Later Stage VC Mar 2022 Early Stage VC May 2022

VC VC VC VC VC VC

$44.4 $41.5 $33.0 $30.2 $30.0 $26.0

Parse Biosciences

Arzeda

4%

Monod Bio Inventprise

2%

Average Asking Rent $/sf

Ozette

Link Immunotherapeutics Seed Round Mar 2022

VC

$14.2

0%

Revalesio

Later Stage VC Jun 2022

VC

$12.0

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

1101 Westlake

Office

$151.5M 153,708 Apr 2022 BioMed Realty

Canyon Pointe

Office

$72.5M 156,626 Jan 2022 Alexandria Real Estate Equities

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Company

Type

1,000 1,200

Representative Lease Transactions (2022)

Fred Hutchinson Cancer Research Center Bristol Myers Squibb

HQ

Company

Address

Size (SF) New/Renewal

Type

Quarter Landlord

Research Facility

0 200 400 600 800

UW Labs

1601 Lind Ave SW, Renton

119,499 Expansion

Office/Lab

Q1

BH Properties

Seagen

HQ

Allen Institute

Research Facility

Sonoma Bio

Unison Elliott Bay – Bldg 3, Seattle

83,773 New

Office/Lab

Q3

Office Properties Income Trust

Benaroya Research Institute AGC Biologics Adaptive Biotechnologies

Sana Biotechnology 3555 Monte Villa Pky, Bothell

79,565 New

High Tech/Lab

Q2

Alexandria Real Estate Equities

Research Facility

Cajal Neuroscience eleven50, Seattle

52,100 New

Office/Lab

Q2

Alexandria Real Estate Equities

Research Facility

Parse Biosciences

Dexter Yard North, Seattle

33,952 New

Office/Lab

Q2

BioMed Realty

HQ

2018

2019

2020 2021

2022

Bristol Myers Squibb 1616 Eastlake Ave E, Seattle

32,744 Renewal

Office/Lab

Q2

Alexandria Real Estate Equities

NanoString Technologies HQ Gilead Sciences

Hires Unique Postings

AltPep

eleven50, Seattle

31,270 New

Office/Lab

Q3

Alexandria Real Estate Equities

Regional Office

Sana Biotechnology

HQ

Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions

Variant Bio

eleven50, Seattle

31,270 New

Office/Lab

Q1

Alexandria Real Estate Equities

Outpace Bio

Dexter Yard South, Seattle

20,319 New

Office/Lab

Q2

BioMed Realty

Top NIH-Funded Institutions (2018-2022)

2010 2,225 2020 2,562 Up 15%

• • •

University of Washington Seattle Pacific University

Tune Therapeutics

Boren Labs, Seattle

15,058 New

Office/Lab

Q1

Oxford Properties

Seattle University

$2.4B University 0f Washington $1.9B Fred Hutchinson Cancer Research Center

$409M Seattle Children’s Hospital

Research Contributor

Brian Cagayat brian.cagayat@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