Life Sciences Update | 2022 October

FAST FACTS 5

San Francisco Bay Area

Market Summary

Public & Private Funding (2022)

Rent vs. Vacancy Comparison

Fast Lab Stats

• With over 46 msf of lab inventory, the San Francisco Bay Area continues to experience aggressive industry expansion by its occupancy base. • The region’s highly educated workforce, reinforced by its proximity to elite research institutions such as UCSF, Stanford and UC Berkeley, has made the Bay Area one of the most elite and active life sciences clusters in the world. • Key in funding growth companies across the Bay Area is the world’s largest life sciences venture capital and private equity concentration. • Biotechnology and pharmaceuticals represent most of the life sciences leasing activity in the market, though the medical device and health tech sectors are extremely active as well. • From early-stage startups through the largest life sciences companies, demand has outpaced existing supply in most Bay Area markets 2-to-1. • Market demand has created a continually landlord-favorable market with developers delivering 7.9 msf over the last six years, 2.9 msf presently under construction and more than 16 msf in various stages of planning. Current and planned construction have been dominated by speculative projects—both ground-up and conversions from office. • The majority of life sciences product in the Bay Area is located across three major markets: San Francisco proper, the San Francisco Peninsula and the East Bay.

Company

Deal Type

Completed Type $ Raised (MM)

12%

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

46.4 MSF Market Square Footage $64.63 $ Per SF 10.5% Vacancy 110K Total Life Sciences

Altos Labs

Early Stage VC Jan 2022 VC

$3,000.0

10%

Ultima Genomics

Later Stage VC May 2022 VC

$600.0

Vacancy Rate

Eikon Therapeutics

Early Stage VC Jan 2022 VC

$517.8

8%

Freenome

Later Stage VC Jan 2022 VC

$300.0

6%

Kriya

Later Stage VC May 2022 VC

$270.5

Delfi Diagnostics

Early Stage VC Jul 2022

VC

$225.0

4%

DNAnexus

Later Stage VC Mar 2022 VC

$200.0

Average Asking Rent $/sf

2%

ReCode Therapeutics Later Stage VC Jun 2022 VC

$200.0

Synthego

Later Stage VC Jun 2022 VC

$200.0

0%

Employment 55.2% Life Sciences Employment 10-Year Growth Rate

2015 2016 2017 2018 2019 2020 2021 2022

Maze Therapeutics

Later Stage VC Jan 2022 VC

$190.0

Asking Rents

Overall Vacancy

Sublease Vacancy

Representative Investment Sale Transactions (2022)

Address

Type

$ MM RBA SF

Date

Buyer

550 Terry A Francois Blvd Office Lab Conversion

$356.0

301,200 Apr 2022 Divco West Properties

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

150 Industrial Rd

High Technology

$190.0 229,640 Jan 2022 BentallGreenOak

Company Type Gilead Sciences HQ (Foster City) BioMarin Pharmaceutical HQ (San Rafael) Amgen

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

5000 Shoreline Ct

Office Lab Conversion

$164.5

138,399 Jan 2022 Divco West Properties

200 Twin Dolphin Dr

Office Lab Conversion

$64.9

48,000 Jan 2022 Trammell Crow Co (CBRE)

HQ ((Thousand Oaks)

Representative Lease Transactions (2022)

Genentech

Regional Office (S. San Francisco) Regional Office (Berkeley)

Company

Address

Size (SF) New/Renewal

Quarter

Landlord

0 500

Eikon Therapeutics

230 Harriet Tubman Rd

285,000 New Lease

Q2

Alexandria Real Estate

Bayer

BD Biosciences

115-135 McCarthy Blvd., N

239,529 New Lease

Q2

Embarcadero / PCCP

Exelixis

HQ (Alameda)

2018

2019

2020 2021

2022

Procept BioRobotics

150-160 Baytech Dr

158,211 New Lease

Q1

Liberty Mutual Group

Zymergen

HQ (Emeryville)

Hires Unique Postings

Genentech

500 Forbes Blvd

155,685 Renewal

Q1

Clarion Partners

Abbvie

Regional Office (S. San Francisco)

Calico Life Sciences

1170-1180 Veterans Blvd

146,923 New Lease

Q2

HCP

Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions 2010 4,167

Illumina

Regional Office (Foster City)

InterVenn Biosciences

499 Forbes Blvd

142,000 New Lease

Q2

Aralon Properties

Brisol Myers Squibb

Regional Office (Redwood City)

Intuitive Surgical

111 Uranium Rd

126,788 New Lease

Q2

Deutsche Bang AG

• • • • • •

Stanford University

University of San Francisco University of California Berkeley

Confidential

5885 Hollis St

114,591 Renewal

Q2

Wareham Development

Top NIH-Funded Institutions (2018-2022)

Billion to One

3200-3220 Whipple Rd

92,000 New Lease

Q2

Tarlton Properties

Gladstone Institute

2020 6,588 Up 58%

Alamar Biosciences

47071 Bayside Pkwy

88,957 New Lease

Q1

Diversified Healthcare

$3.3B University of California, San Francisco $2.7B Stanford University

$666M University of California Berkeley

Lawrence Livermore Labs

Lawrence Berkeley National Labs

•

University of California, San Francisco

Research Contributor

Jason Karbelk jason.karbelk@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