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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