Life Sciences Update | 2022 October

FAST FACTS 5

Suburban Maryland (I-270 Corridor)

Market Summary

Public & Private Funding (2022)

Rent vs. Vacancy Comparison

Fast Lab Stats

• Suburban Maryland, also known as the I-270 Life Sciences Corridor, is home to the National Institutes of Health and a top education system. The Corridor is a top cluster in the nation, due to strong government and VC funding, a strong workforce and a market that offers an overall good quality of life. • The Shady Grove cluster along the I-270 Corridor, also known as DNA Alley, has the highest concentration of life sciences tenants within the BioHealth Capital Region. • Investors continue to recognize the I-270 Corridor as an established life sciences market with continued demand and low vacancy rates. Both institutional and local developers are hungry for land, and several conversions throughout Montgomery and Frederick Counties are underway. • Leasing volume remains high and suburban Maryland is priced at competitive rates compared to other top markets. • The I-270 corridor is experiencing tremendous rent growth, with asking rents in Montgomery County averaging $42.50 psf NNN with a current strike rate of $39.22 psf as of mid-year 2022. Rates are rising due to limited supply coupled with increased tenant improvement packages.

Company

Deal Type

Completed Type $ Raised (MM)

12%

$41

10.6 MSF Market Square Footage $39.22 $ Per SF 3.5% Vacancy 40.7K Total Life Sciences Employment 17.7% Life Sciences Employment 10-Year Growth Rate

Somatus

Later Stage VC Feb 2022

VC

$325.0

$39

10%

Arcellx (NAS: ACLX) IPO

Feb 2022

IPO

$123.8

$37

Vacancy Rate

Adaptive Phage Therapeutics

Early Stage VC Apr 2022

VC

$61.0

8%

$35

RNAimmune

Early Stage VC Mar 2022

VC

$27.0

6%

$33

Shuttle Pharmaceuticals (NAS: SHPH)

$31

Seed Round Feb 2022

VC

$0.9

4%

$29 Average Asking Rent $/sf

KinaRx

Angel

Jan 2022

VC

$0.1

2%

$27

$25

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

9713 Key West Ave

Lab

$72.02 128,394

Jun 2022 MetLife Investment Management

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

9715 Key West Ave

Lab

$39.01 82,258

Jun 2022 MetLife Investment Management

9717 Key West Ave

Lab

$36.89 73,761

Jun 2022 MetLife Investment Management

Company

Type

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

AstraZeneca Research Facility GlaxoSmithKline Research Facility Otsuka Research Facility ThermoFisher Scientific Regional Office KitePharma (Gilead)

Representative Lease Transactions (2022)

0 200 400 600 800

Company

Address

Size (SF) New/Renewal

Type

Quarter

Landlord

Regional Headquarters

Charles River Laboratories

9603 Medical Center Dr

48,516 Direct

Medical Office

Q2

Alexandria Real Estate

Supernus

Headquarters

Deka Biosciences

20380Seneca Meadows Pky

14,000 Direct

Flex

Q2

Minkoff Development Corp.

Qiagen

US Headquarters Research Facility

Arcellx

800 King Farm Rd

57,902 Direct

Flex

Q3

Banyan Street Capital

MilliporeSigma (BioReliance)

2018

2019

2020 2021

2022

Vaccitech

20400 Century Blvd

20,000 Direct

Flex

Q2

Alexandria Real Estate

National Institutes of Health

Headquarters

Hires Unique Postings

Food & Drug Administration

Headquarters

• • • Johns Hopkins University Montgomery College University of Maryland - Institute for Bioscience & Biotechnology Research Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions 2010 3,016

$3.6B Johns Hopkins University $1.9B Leidos Biomedical Research, Inc. Top NIH-Funded Institutions (2018-2022)

$1.0B University of Maryland Baltimore

Research Contributors

2020 4,047 Up 34%

Lauren Kraemer lauren.kraemer@cushwake.com

Nathan Edwards nathan.edwards@cushwake.com

Chris Whittle christopher.whittle@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

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