Life Sciences U.S. Fit-Out Cost Guide 2023

UNITED STATES LIFE SCIENCES

FIT OUT COST GUIDE 2023

INTRODUCTION

Material delays and increased costs that plagued the construction sector during the pandemic have continued to impact life sciences project timelines. While most global supply chain constraints have eased, additional factors have applied pressure to construction projects in the life sciences sector. > Competition for materials has shifted from residential to government infrastructure projects and net-zero efforts. > Commodity prices have decreased from recent historic highs but remain elevated relative to pre-pandemic pricing. Increasing demand for copper used in net-zero electrification efforts will apply upward pressure to prices. > Construction and building cost increases have moderated despite continued inflationary pressures and a higher interest rate environment. However, the labor-cost component of pricing continues to increase. > Construction jobs continue to be added in the construction sector, totaling 86,000 jobs in the first seven months of 2023 and approximately 17,000 jobs in the non-residential building sector. At the same time, labor constraints continue to make staffing projects difficult. Wages are expected to continue to increase above historical rates through 2024 as contractors struggle to attract talent. This guide, which covers nine lab and cGMP facility types across the six major U.S. life sciences markets, helps occupiers better understand their capital planning and relocation budgets, and includes a comprehensive fit out cost section, which covers: mechanical electrical, piping and architectural trades; millwork; doors, frames and hardware; drywall, acoustic and carpentry; general finishes; mechanical, plumbing and fire protection; electrical and more.

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UNITED STATES LIFE SCIENCES

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DEMAND FOR SUPPLIES CONTINUES TO IMPACT PROJECT TIMELINES

Residential construction was a significant source of competition for materials early in the pandemic. However, increasing interest rates have significantly curtailed residential construction, which dropped 25% during the first six months of 2023, according to Dodge Construction Network (DCN). Increased competition for materials has emerged from the public sector due to a large influx of government funds focused on construction. Infrastructure construction increased 29% year-to-date as of June 2023, according to DCN.

Beyond industry and government funding, efforts to transition to net-zero emissions have increased competition for electrical materials. Components such as electrical switchgear have delays that can extend more than 60 weeks. These delays in critical components continue to add upward pressure to construction project timelines. Cushman & Wakefield surveyed 72 general contractors (GCs) during the winter of 2023. When asked about their sentiment on material lead times, 70% of GCs felt that lead times had increased slightly (31%) or significantly (39%) in the preceding six months. Looking forward six months, that sentiment improved to 56% believing lead times would increase with 43% expecting slight increases and only 13% expecting significant increases in material lead times. Although that sentiment represented improvement, material lead times were already extended. Therefore, even a slight increase represents ongoing delays expected on extended timelines.

READ MORE: NAVIGATING CONTINUED CHALLENGES FOR LIFE SCIENCES PROJECTS

KEY TAKEAWAY

Material delays continue to impact project timelines, and an increase in infrastructure and net-zero projects has emerged as an additional source of demand for key components.

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COMMODITY PRICES DOWN FROM PANDEMIC HIGHS

Supply chain constraints during the pandemic led to historically high commodities prices, which greatly impacted construction costs. As these constraints eased, prices for most commodities eased from peak levels, but remain elevated relative to pre-pandemic levels. Copper has fallen 11% from its pandemic high and is currently 8% lower year over year (YoY) as of the second quarter of 2023. While copper prices are steadily moderating, the forecast is for additional price increases toward the end of the year through 2025. Copper prices will face upward pressure from the increased demand of net-zero transitions globally, as copper is essential to the electrification of systems. Lumber costs are down 29% YoY as of the second quarter of 2023 and are 40% below pandemic and historic peaks. The current forecast calls for a leveling out of prices in the near term; however, the Canadian wildfires may impact pricing in the future as the effect is assessed. Steel prices underwent the greatest pandemic increase, rising 85% from the first quarter of 2020 to their peak level in the second quarter of 2022. Pricing has

slowly begun to recede from peak levels, falling 16% YoY as of the second quarter of 2023. Steel pricing is expected to level out in the near term.

KEY TAKEAWAY

Commodity prices have receded from pandemic highs. Lumber and steel prices are expected to level out. Increasing demand for copper, due to global electrification efforts, will apply upward pressure to prices.

COST INDEX FOR LUMBER, STEEL AND COPPER COMMODITY PRICES ARE MODERATING

Forecast

Lumber

Steel (Pipe and Tube)

Copper

800

-8% decrease YOY

700

600

500

400

-16% decrease YOY

300 Cost Index

200

-26% decrease YOY

100

0

Source: U.S. Bureau of Labor Statistics (BLS); Moody’s Analytics Forecasted

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CONSTRUCTION COSTS GROWTH RETURNING TO LONG-TERM AVERAGES

COSTS ARE MODERATING BUT REMAIN ELEVATED

Construction costs faced significant upward pressure in 2021 and 2022 due to a combination of supply chain constraints, inflation and interest rate hikes. Pricing decelerated steadily through the first six months of 2023 and as of July 2023, monthly annual increases for both construction and building cost indices have fallen below their 10-year averages. As of July 2023, the Engineering News Record (ENR) construction cost index rose 2% YoY, and the building cost index rose 2.6% YoY. Both were significantly below their 10-year averages of 3.4% and 4.4%, respectively. Despite easing commodity prices, the labor component of construction costs continues to apply upward pressure to overall pricing. As of July 2023, the common labor cost index rose 2.1% YoY, significantly higher than 2022 levels but right at the 10-year average. Skilled labor costs have risen more strongly. As of July 2023, the skilled labor cost index was 4.5% higher YoY, nearly double its 10-year average of 2.4%.

MONTHLY YOY CHANGES

10% 12% 14% 16% 18%

0% 2% 4% 6% 8%

Construction Building Common Labor Skilled Labor

Source: Engineering News Record (ENR) (McGraw-Hill)

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Cushman & Wakefield’s GC sentiment survey has shown slight improvements, but as of January 2023, nearly two-thirds of GCs continued to expect supplier costs to increase in the next six months. That is down from 87% of GCs who felt that supplier costs had increased slightly (49%) or significantly (38%) in the six months prior.

AS OF JULY 2023 ANNUAL INCREASES HIGHER FOR SKILLED LABOR

5.0%

4.5%

4.4%

4.5%

4.0%

3.4%

3.5%

3.0%

2.6%

2.4%

2.5%

2.1%

2.1%

2.0%

2.0%

1.5%

1.0%

0.5% Percent Change in Cost Index

0.0%

Construction

Building

Common Labor

Skilled Labor

Year-over-Year

10-Year Average

Source: Engineering News Record (ENR) (McGraw-Hill)

KEY TAKEAWAY

Construction cost increases have decelerated and as of July 2023, the ENR index annual growth rate for both construction and building costs fell below their 10-year monthly increase averages.

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CONSTRUCTION LABOR CONSTRAINTS CONTINUE TO PUSH UP WAGES

Labor costs have steadily increased due to persistent shortages in the construction sector. Even before the pandemic impacted labor markets, there was widespread concern about how a wave of retirements and declining interest in the sector would impact construction projects. Most employment sectors quickly recovered the jobs lost during the onset of the pandemic—even adding more jobs post-pandemic. However, nonresidential construction employment did not recover and instead, faced labor deficits. Of the more than 47,000 nonresidential construction jobs lost due to the pandemic in 2020 through 2021, 37,000 were recovered as of year-end 2022, leaving a 10,000-job deficit from pre-pandemic levels. Revised forecasts indicate that if hiring holds strong through year-end 2023, the sector will be able to clear that 10,000-job deficit by year-end. However, additional loss of labor to the sector in coming years may continue to apply upward pressure to costs.

months of 2023. However, the residential sector experienced a loss of over 11,000 jobs as residential construction ebbed, while the non-building residential sector added nearly 17,000 jobs over the same period. During the eight quarters preceding the pandemic, job openings were largely outpacing quit rates. The pandemic accelerated this trend, and the openings-to-quits rate gap was at its widest during the fourth quarter of 2022 at 310 basis points (bps). That gap closed slightly as of the second quarter of 2023 at 220 bps as the job openings rate receded slightly and the quits rate increased. To attract talent to open positions, the construction sector has raised wages consistently and significantly over the last two years. Based on July 2023 BLS data, construction average hourly earnings grew 5.8% on a YoY basis, more than double the overall construction employment growth of 2.5% YoY. Moreover, the trailing 12-month moving average for median wage growth shows that wages are elevated across

Based on recent U.S. Bureau of Labor Statistics (BLS) data, the overall construction sector added over 86,000 new jobs in the first seven

U.S. CONSTRUCTION JOB OPENINGS AND QUIT RATES LABOR CONSTRAINTS CONTINUE TO IMPACT THE U.S. CONSTRUCTION SECTOR

6%

5%

4%

Gap at its widest

3%

2%

1%

0%

Job Openings Rate

Quits Rate

Source: U.S. Bureau of Labor Statistics (BLS)

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sectors relative to Federal Reserve targets. While overall wages are trending down, construction

and mining wages continue to trend up, exceeding the overall wage growth rate.

KEY TAKEAWAY

Both common and skilled labor costs continue to rise, with skilled labor costs growing at a faster pace. A recent ENR survey of construction company CFOs found that higher labor costs are expected to continue into 2024 and are forecasted to surpass 4.8% YoY, significantly higher than pre-pandemic averages. GC sentiment on labor costs improved in Cushman & Wakefield’s 2023 survey over the 2022 survey. In 2022, 87% of GCs surveyed felt that labor costs would increase slightly (71%) or significantly (16%) in the next six months. This fell to 67% of GCs feeling that labor costs would increase slightly (63%) or significantly (4%) in the first six months of 2023. However, given current wage data, that was probably overly optimistic.

Among construction cost components, skilled labor experienced the largest increases in 2023. Wages are expected to continue to increase through 2024, applying upward pressure to costs as the industry struggles to staff projects.

CONSTRUCTION WAGE GROWTH SURPASSES OTHER SECTORS

Construction and mining

Manufacturing

Trade and transportation

Overall

Fed Target

8.0

7.0

6.0

5.0

4.0

3.0

Median Wage Growth (12 month moving average)

2.0

Source: Bureau of Labor Statistics, Federal Reserve Bank of Atlanta

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LIFE SCIENCES CONSTRUCTION PIPELINE IS ROBUST

Demand for life sciences space has accelerated significantly over the last decade. In the U.S., total inventory grew over 34% in the last seven years and 19% in the last three years. This growth significantly outpaces inventory growth of other major, more mature CRE sectors over the same period. Current Construction Pipeline The U.S. life sciences development pipeline has more than doubled in the last three years and currently stands at nearly 35.2 million square feet (msf) as of mid-year 2023. It has also grown from 6% of total inventory in 2019 to its current level at 18% of total U.S. inventory. Most of the

space currently under construction is speculative, meaning that a significant amount of space may enter the market vacant. This increase in vacant space means that existing vacant life sciences inventory will compete with newly constructed space. There will likely be a more tenant-favorable environment through the rest of 2023 and into 2024. Across all markets, Boston has the largest construction pipeline with 15 msf of new space under construction, which is equivalent to 42% of Boston’s current lab inventory. After Boston, the largest construction pipelines are in the San Francisco Bay Area (7.6 msf), San Diego (5.1 msf), Raleigh-Durham (2.2 msf) and Seattle (1.4 msf).

LAB SPACE: CURRENT INVENTORY & UNDER CONSTRUCTION

Current Inventory

Under Construction

U/C as % of Inventory

60

50%

35.2 msf of lab space under construction

50

40%

40

30%

30

20%

20

MSF

10%

10

0%

0

Source: Cushman & Wakefield Research

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LIFE SCIENCES FIT OUT COST GUIDE 2023

Employment Driving Demand and Growth Life sciences employment in the U.S. has continued to show remarkable growth and resilience during economic downturns. Based on Cushman & Wakefield’s analysis of Moody’s data, employment in the life sciences sector grew 9.9% YoY in 2021—despite the pandemic-triggered recession—while other sectors struggled. In the last decade, life sciences employment has outpaced high-growth sectors, such as office using, high-tech and industrial employment, growing 7.8% annually over the last 10 years. As of year-end 2022, employment in life sciences grew an additional 11.5% YoY. Demand for talent in the U.S. life sciences sector was strong in the 12-month period ending June 2023, with 631,000 unique job postings—slightly behind the previous 12-month period ending June 2022, with 640,0001 openings. This level of postings translates into a 3:1 ratio with unique jobs—meaning that every three postings equate to one unique job—for a total of nearly 2 million non-unique job postings. This 3:1 ratio reflects the continued urgency companies place in finding qualified candidates to fuel the life sciences market. There is a very clear correlation between life sciences job growth and inventory. Markets with the largest gains in employment, including Boston and the San Francisco Bay Area, have also experienced significant new development.

READ MORE: LIFE SCIENCES FUNDAMENTALS AND MARKET ANALYSIS

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FIT OUT COST GUIDE METHODOLOGY As mentioned, the information in this report covers nine lab and cGMP facility types across the six major U.S. life sciences markets—specificity that helps our clients better understand project costs. Please carefully review the assumptions below.

GENERAL OVERALL ASSUMPTIONS The following assumptions apply to all lab and cGMP type fit out costs: > Work completed in cold shell (i.e no greenfield) > All existing base building utilities sized appropriately > All projects based on TI fit out scopes in leased space, where core and shell scope are existing > Assumes floor loading and floor-to-floor clearances are sufficient for life sciences purposes > Inclusive of all project hard costs > Assumes all lab and manufacturing space is on standby power > Assumes all waste neutralization is already in place as part of base building > All lab space costs will include casework > All cGMP spaces are designed without full utility and HVAC redundancies

EXCLUSIONS These exclusions apply to all lab and cGMP type fit out costs: > Process and lab equipment > All soft costs (architect, engineering and permit costs) > Low-voltage cabling > Audio visual equipment > Security > Furniture > Other furniture, fixtures and equipment (FF&E) items

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PRICING CRITERIA BY LAB AND CGMP TYPE

ANALYTICAL, CLINICAL LABORATORY IMPROVEMENT AMENDMENTS (CLIA) TESTING LABS Typical Activities > Diagnosis, prevention, or treatment of disease or impairment > Health assessments

BSL-1 & BSL-2 LABS Typical Activities > Biotech research and development work • Medical • Agriculture • Industrial

Typical Equipment > Analytical equipment > LC/MS setups > Immunoassay analyzers

Typical Equipment > BSC hoods > Freezers, fridges, deli cases

Basic Construction Elements > 100% OSA HVAC system

> Centrifuges > Sequencers > Incubators

> Distributed process gases and utilities > N2 generator production for N2 gas > Heavy power use and distribution > UPS and standby power (above base building typical) > BSCs > BSL2 level spaces > LC/MS analytical type labs will need careful chemical quantity planning and limits > Casework

Basic Construction Elements > 100% OSA HVAC system > Distributed process gases and utilities > Light power use and distribution > Standby power > BSCs > Casework

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BSL-3 LABS Typical Activities > Biotech research and development work > Typical equipment > BSC hoods > Freezers, fridges > Centrifuges > Other Basic Construction Elements > Isolated 100% OSA HVAC system • Bag-in/bag-out filters • On emergency power > Advanced BAS system to ensure differential pressure to adjacent spaces > Distributed process gases and utilities > Interlocking door anti-room > Air pressure differential alarms > Airtight construction with washable surfaces > Seamless floors > Monolithic seamless constructed ceilings > Light power use and distribution > Standby power

CHEMISTRY LAB Typical Activities > Chemistry research and development work

Typical Equipment > Fume hoods > Freezers, fridges > Centrifuges > Rotovaps

Basic Construction Elements > 100% OSA HVAC system > Typically exhaust-driven spaces > Distributed process gases and utilities > Seamless floors > Medium power use and distribution > Standby power > Glassware storage with glass wash/ drying support > High chemical storage and chemical sample management spaces > Casework

> BSC hoods (ducted) > Dedicated autoclave > Casework

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GENE/CELL THERAPY (cGMP) Typical Activities > cGMP gene/cell therapy manufacturing

BULK BIOLOGICS MANUFACTURING CGMP Typical Activities > Bulk biologics manufacturing

Typical Equipment > Bioreactors/fermenters > Cell separation systems > Freezers, fridges > Tube welders and sealers > LN2 freezers > Other

Typical Equipment > Cold rooms and freezers

> Centrifuges > Fermenters > Bioreactors > Chrome columns > UF/DF skids > Stainless process and holding tanks Basic Construction Elements > 100% OSA HVAC system > Distributed process water, gases and utilities systems > Seamless epoxy floors > Smooth, cleanable wall and ceiling finishes > High-power use and distribution > UPS and standby power > Building automation and controls

Basic Construction Elements > 100% OSA HVAC system (ISO 7/8) > Distributed process gases and utilities > Partitions are fabricated panel systems > Seamless floors > Medium power use and distribution > Standby power > Passthrough autoclave > Additional cold room storage and workspaces > Casework > ISO5 Isolator

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SINGLE-USE HOUSING VIVARIUM Typical Activities > Small animal simulated environmental R&D

WAREHOUSE SPACE Typical Activities > Ambient and cold bulk material storage

Typical Equipment > Loading/receiving dock > High bay warehouse racking (assume four-level elevated shelving) > Utility/mechanical area > AHUs, chillers, boilers, condensers, pumps > Electrical room > IT room > Cold storage and cold room below 20 degrees > Condenser > Electrical panels > Control panels Basic Construction Elements > Dehumidification control > Sealed concrete flooring > In-rack ambient sprinkler system > Dry sprinkler system (cold room) > Single story, 30’ joist clearance

Typical Equipment > Holding cages > Freezers, fridges > Centrifuges

Basic Construction Elements > 100% OSA HVAC system on standby power > Holding cages on separate air distribution and automated water systems > Seamless floors > Small power use and distribution > Standby power > Aux cleaning areas for holding cages and bedding staging areas > Necropsy spaces > Special lighting requirements day and red-light controls > Casework

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OFFICE SPACE Typical Activities > Employee office, meeting and break room space

Typical Equipment > Exhaust fans > AHUs/VAVs > Boilers/chillers > Hot water heater > Cameras/smart screens

Basic Construction Elements > Typical office HVAC mechanical system > CHW and HHW distribution > Domestic hot and cold water > Drywall and glass partitions and paint > Ceiling tiles, carpet/floor tile > Fire alarm and sprinklers

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UNDERSTANDING COSTS: AN EXAMPLE

Fit out costs provided here for individual lab and cGMP types give guide users the flexibility to better understand costs. The following example project calculation is for a cGMP gene therapy small manufacturing site located in Seattle. Using a cold core and shell, the project includes a cGMP gene MFG suite, QA/QC analytical lab, BSL2 labs, and cGMP warehouse. G&A spaces include offices, break areas, conference rooms, primary circulation space, lobby and support space. Below is a table of the square-foot breakouts with associated cost per square foot (psf) for each type of space. The table consists of the project drawing usable square-foot take offs and the average cost psf per type of space. To get the cost psf on rentable sf, one will need to account for the loss factor of the building. Estimated costs are indicative of market averages based on certain assumptions. Since exact costs for specific projects may differ from those presented here, we recommend engaging a Project & Development Services (PDS) professional to advise on precise costs based on your unique construction requirements.

Second Floor (Mezzanine)

First Floor

Usable SF

Estimated $/Ft

ROM - Cold Shell

14,365

$263

$ 3,777,995

Office, Primary Circulation, G&A Space

6,840

$ 1,230

$ 8,413,200

cGMP (MFG/Drug Sub.) Cell/Gene

3,038

$ 641

$ 1,947,358

QA/QC Analytical Lab

8,557

$ 615

$ 5,262,555

BSL2 Labs

3,405

$ 257

$875,085

cGMP Warehouse

36,205

$20,276,193

Total Usable/SF & Hard Costs

40,550

$/RSF

$ 500.00

Estimated Rentable - 12% (Loss Factor)

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USING THE GUIDE

LIFE SCIENCES FIT OUT COSTS

Across all life sciences facility types and the six markets surveyed, fit out costs overall averaged $837 psf, with costs totaling $690 psf on the low end and $980 psf at the high end. By facility type, costs were highest for BSL3, averaging $1,930 psf and lowest for warehouse at $199 psf. By market, costs were highest in San Francisco, averaging $1,152 psf on the high end and lowest in Raleigh-Durham, averaging $533 psf on the low end. Comparing all markets and facility types, the three priciest markets were all BLS3 facility types on the high end: San Francisco ($2,272 psf); Philadelphia ($2,021 psf); and Boston ($2,008 psf). The three most cost effective markets were all warehouse facility type on the low end: Raleigh Durham ($160 psf); Seattle ($193 psf); and San Diego ($201 psf).

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FIT OUT COSTS BY FACILITY TYPE

Low Average High

$2,500

$2,000

$1,500

$1,000

Cost per Square Foot

$500

$0

Office Warehouse BSL1 & BSL2 Analytical (CLIA)

Chemistry Vivarium cGMP Bulk Manufacturing

Gene/Cell Therapy

BSL3

Source: Cushman & Wakefield Project & Development Services

FIT OUT COSTS BY MARKET

Low Average High

$1,400

$1,200

$1,000

$800

$600

Cost per Square Foot

$400

$200

$0

Raleigh-Durham, NC San Diego, CA Seattle, WA

Boston, MA Philadelphia, PA San Francisco, CA

Source: Cushman & Wakefield Project & Development Services

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COST SEGMENTATION

Fit out costs are grouped into nine segments, including Misc. Architectural Trades; Arch. Millwork; Doors, Frames, Hardware; Drywall, Acoustic, Carpentry; General Finishes; Special Construction (Clean Rooms/Cold Rooms); Mechanical, Plumbing, Fire Protection; Electrical; General Conditions & Fee; and Contingency. Taking a closer look at these components of costs, an average of 45% of total costs were allocated to Mechanical, Plumbing, Fire Protection across all markets and asset subtypes. The next largest allocation was General Conditions & Fee at 14% of total costs and Electrical with 11% of total costs. At both a market and facility type level, the greatest proportion of cost is generally allocated to Mechanical, Plumbing and Fire Protection, except for warehouse costs, where 29% is allocated to Special Construction (Clean Rooms/ Cold Rooms) and another 19% is allocated to Mechanical, Plumbing and Fire Protection. Gene/ Cell Therapy also has a significant amount of costs allocated to Special Construction (Clean Rooms/Cold Rooms) at 18%.

AVERAGE COSTS TENANT IMPROVEMENT COSTS BY MARKET AND SUBTYPE

By Market By Market

By Subtype By Facility Type

Misc. Architectural Trades Drywall, Acoustic, Carpentry

Arch. Millwork General Finishes

Doors, Frames, Hdwr

Special Construction (Clean Rooms/Cold Rooms)

Mechanical, Plumbing, Fire Protection

Electrical

General Conditions & Fee

Contingency

Raleigh-Durham, NC

Office

Seattle, WA

Warehouse

San Francisco, CA

Vivarium

cGMP Bulk Manufacturing

San Diego, CA

Gene/Cell Therapy

Philadelphia, PA

Chemistry

BSL3

Boston, MA

BSL1 & BSL2

Raleigh-Durham, NC

Analytical (CLIA)

0% 20% 40% 60% 80% 100%

0% 20% 40% 60% 80% 100%

Source: Cushman & Wakefield Project & Development Services

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LOCALMARKETDATA

BOSTON, MA

Analytical (CLIA) BSL1 & BSL2 BSL3 Chemistry

Gene/Cell Therapy

cGMP Bulk Manufacturing Vivarium Warehouse Office

Space Type

Misc. Architectural Trades

$97.52

$95.93

$99.13

$126.88

$51.25

$105.10

$118.49

$35.06

$9.60

-

-

-

-

-

-

$2.53

$2.12

$7.31

Arch. Millwork

Doors, Frames, Hdwr

$9.43

$12.51

$3.10

$9.41

$2.93

$2.08

$17.28

$2.82

$23.29

Drywall, Acoustic, Carpentry

$28.14

$38.59

$0.46

$35.11

$22.42

$0.31

$48.20

$13.36

$35.15

$13.93

$20.85

$14.17

$15.23

$22.83

$17.11

$21.68

$8.21

$16.64

General Finishes

Special Construction (Clean Rooms/ Cold Rooms) Mechanical, Plumbing, Fire Protection

-

-

$245.82

-

$283.05

$209.86

-

$76.96

-

$292.70 $250.12 $681.44 $376.99 $566.17

$569.24

$470.23

$48.14

$70.05

$100.55 $96.40 $106.69 $78.30

$94.20

$94.25

$122.61

$28.37

$56.26

Electrical

General Conditions & Fee

$90.97

$86.17

$194.92 $107.68

$175.03

$167.41

$134.41

$35.96

$36.23

$17.97

$17.04

$38.50

$21.27

$34.57

$33.07

$26.55

$7.12

$7.17

Contingency

Total

$651.22 $617.61 $1,384.24 $770.88 $1,252.45 $1,198.43 $961.98 $258.11 $261.70

Note: Costs represent market average

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LOCALMARKETDATA

PHILADELPHIA, PA

Analytical (CLIA) BSL1 & BSL2 BSL3 Chemistry

Gene/Cell Therapy

cGMP Bulk Manufacturing Vivarium Warehouse Office

Space Type

Misc. Architectural Trades

$98.74

$97.45

$100.66 $128.48

$52.06

$106.10

$120.04 $35.49

$9.87

-

-

-

-

-

-

$2.69

$2.20

$7.51

Arch. Millwork

Doors, Frames, Hdwr

$9.93

$13.32

$3.26

$9.69

$3.09

$2.10

$18.51

$2.95

$24.75

Drywall, Acoustic, Carpentry

$28.88

$39.76

$0.49

$35.94

$23.53

$0.32

$50.20

$13.87

$36.15

$14.35

$21.60

$14.57

$15.71

$23.77

$17.25

$22.32

$8.52

$17.38

General Finishes

Special Construction (Clean Rooms/ Cold Rooms) Mechanical, Plumbing, Fire Protection

-

-

$247.28

-

$285.34

$211.51

-

$77.58

-

$300.13 $258.07 $699.92 $391.82

$581.61

$573.59

$487.90 $50.94

$72.30

$103.64

$99.47

$110.38

$81.27

$97.83

$94.98

$127.72

$30.04

$58.33

Electrical

General Conditions & Fee

$93.22

$88.73

$199.25

$111.20

$179.13

$168.73

$139.17

$37.06

$37.56

$18.42

$17.55

$39.36

$21.97

$35.37

$33.34

$27.49

$7.34

$7.43

Contingency

Total

$667.31 $635.95 $1,415.17 $796.07 $1,281.74 $1,207.91 $996.04 $265.99 $271.28

Note: Costs represent market average

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LOCALMARKETDATA

RALEIGH-DURHAM, NC

Analytical (CLIA) BSL1 & BSL2 BSL3 Chemistry

Gene/Cell Therapy

cGMP Bulk Manufacturing Vivarium Warehouse Office

Space Type

Misc. Architectural Trades

$76.20

$75.05

$76.97

$98.65

$39.64

$81.89

$92.51

$27.21

$7.72

-

-

-

-

-

-

$2.08

$2.00

$5.79

Arch. Millwork

Doors, Frames, Hdwr

$7.67

$10.29

$2.70

$7.45

$2.54

$1.62

$14.45

$2.36

$19.10

Drywall, Acoustic, Carpentry

$22.23

$30.62

$0.38

$27.64

$18.14

$0.24

$38.64

$10.84

$27.79

$10.79

$16.37

$11.06

$12.16

$18.29

$13.25

$17.15

$6.70

$13.39

General Finishes

Special Construction (Clean Rooms/ Cold Rooms) Mechanical, Plumbing, Fire Protection

-

-

$189.09

-

$219.34

$162.48

-

$59.63

-

$230.47 $198.48 $494.97 $301.34 $446.82 $440.42

$375.33 $39.26

$55.60

$79.65

$76.48

$84.89

$62.56

$75.30

$72.95

$98.33

$23.16

$44.90

Electrical

General Conditions & Fee

$71.60

$68.26

$145.63

$85.48

$137.61

$129.59

$107.10

$28.59

$28.90

$14.15

$13.50

$28.78

$16.90

$27.18

$25.61

$21.16

$5.67

$5.72

Contingency

Total

$512.76 $489.04 $1,034.46 $612.18 $984.86 $928.06

$766.74 $205.41 $208.91

Note: Costs represent market average

24

Cushman & Wakefield

LIFE SCIENCES FIT OUT COST GUIDE 2023

LOCALMARKETDATA

SAN DIEGO, CA

Analytical (CLIA) BSL1 & BSL2 BSL3 Chemistry

Gene/Cell Therapy

cGMP Bulk Manufacturing Vivarium Warehouse Office

Space Type

Misc. Architectural Trades

$93.92

$92.52

$95.65

$122.23

$49.66

$101.09

$114.49

$34.33

$9.34

-

-

-

-

-

-

$2.51

$2.12

$7.10

Arch. Millwork

Doors, Frames, Hdwr

$9.24

$12.32

$3.41

$9.20

$2.90

$2.00

$17.10

$2.78

$22.95

Drywall, Acoustic, Carpentry

$27.42

$37.61

$0.46

$34.21

$22.03

$0.30

$47.32

$13.09

$34.37

$13.62

$20.42

$13.86

$14.90

$22.42

$16.58

$21.22

$8.08

$16.33

General Finishes

Special Construction (Clean Rooms/ Cold Rooms) Mechanical, Plumbing, Fire Protection

-

-

$240.50

-

$274.09

$203.48

-

$74.55

-

$286.49 $244.75 $667.47 $370.25 $554.13

$552.46

$461.17

$47.47

$68.57

$98.50

$94.40 $104.56

$76.68

$92.32

$91.42

$120.29

$27.97

$55.08

Electrical

General Conditions & Fee

$88.77

$84.09 $190.70 $105.25

$170.78

$162.26

$131.56

$35.18

$35.46

$17.54

$16.63

$37.67

$20.80

$33.73

$32.06

$25.99

$6.97

$7.02

Contingency

Total

$635.50 $602.74 $1,354.29 $753.50 $1,222.05 $1,161.66 $941.63 $252.53 $256.21

Note: Costs represent market average

25

LOCALMARKETDATA

SAN FRANCISCO, CA

Analytical (CLIA) BSL1 & BSL2 BSL3 Chemistry

Gene/Cell Therapy

cGMP Bulk Manufacturing Vivarium Warehouse Office

Space Type

Misc. Architectural Trades

$118.31

$116.67

$120.27 $153.79

$61.30

$127.14

$142.27

$39.99

$11.64

-

-

-

-

-

-

$3.14

$2.35

$8.92

Arch. Millwork

Doors, Frames, Hdwr

$11.83

$15.83

$3.99

$11.29

$3.55

$2.52

$21.84

$3.44

$29.32

Drywall, Acoustic, Carpentry

$33.82

$46.82

$0.57

$41.94

$27.66

$0.38

$58.50

$16.18

$41.96

$16.69

$25.17

$16.87

$18.27

$27.66

$20.07

$25.84

$9.77

$20.38

General Finishes

Special Construction (Clean Rooms/ Cold Rooms) Mechanical, Plumbing, Fire Protection

-

-

$276.89

-

$333.15

$245.68

-

$90.46

-

$345.45 $300.10 $805.47 $454.44 $671.40

$663.73

$567.34

$59.77

$84.02

$119.87

$115.34

$128.13

$95.02

$114.22

$110.16

$149.21

$35.30

$68.17

Electrical

General Conditions & Fee

$108.39 $103.90 $228.98 $129.99 $207.98

$196.26

$162.48

$43.05

$43.91

$21.41

$20.54

$45.22

$25.68

$41.07

$38.77

$32.09

$8.52

$8.69

Contingency

Total

$775.78 $744.38 $1,626.39 $930.43 $1,487.98 $1,404.71 $1,162.71 $308.84 $317.01

Note: Costs represent market average

26

Cushman & Wakefield

LIFE SCIENCES FIT OUT COST GUIDE 2023

LOCALMARKETDATA

SEATTLE, WA

Analytical (CLIA) BSL1 & BSL2 BSL3 Chemistry

Gene/Cell Therapy

cGMP Bulk Manufacturing Vivarium Warehouse Office

Space Type

Misc. Architectural Trades

$95.98

$94.84

$97.84

$124.88

$50.25

$103.01

$116.02

$33.37

$9.64

-

-

-

-

-

-

$2.64

$2.20

$7.32

Arch. Millwork

Doors, Frames, Hdwr

$9.79

$13.18

$3.54

$9.34

$3.07

$2.04

$18.37

$2.91

$24.42

Drywall, Acoustic, Carpentry

$27.89

$38.58

$0.48

$34.60

$23.00

$0.31

$48.67

$13.52

$34.77

$13.87

$20.94

$14.03

$15.19

$23.02

$16.46

$21.45

$8.25

$16.93

General Finishes

Special Construction (Clean Rooms/ Cold Rooms) Mechanical, Plumbing, Fire Protection

-

-

$230.88

-

$272.83

$201.64

-

$74.12

-

$287.00 $248.86 $669.75 $378.55

$557.52

$545.64

$471.67

$49.91

$69.70

$99.61

$95.78

$106.47

$78.81

$94.82

$90.47

$124.01

$29.47

$56.52

Electrical

General Conditions & Fee

$89.60

$85.79

$190.13

$107.58

$171.95

$160.96

$134.71

$35.74

$36.40

$17.70

$16.97

$37.56

$21.26

$33.96

$31.80

$26.61

$7.08

$7.20

Contingency

Total

$641.44 $614.94 $1,350.68 $770.21 $1,230.43 $1,152.33 $964.13 $256.59 $262.90

Note: Costs represent market average

27

CONTACTS

BRIAN UNGLES Project & Development Services, Americas Leader brian.ungles@cushwake.com SANDY ROMERO Research Manager Global Research sandy.romero@cushwake.com

REGIONAL PDS LIFE SCIENCES LEADS JASON D’ORLANDO Project & Development Services, Americas Life Sciences Lead jason.dorlando@cushwake.com

ERIC GILES Project & Development Services,

West Life Sciences Lead eric.giles@cushwake.com

BLAKE MCCLELLAN Project & Development Services, Southeast Life Sciences Lead blake.mcclellan@cushwake.com KEVIN CAMPONESCHI Project & Development Services, Mid-Atlantic Life Sciences Lead kevin.camponeschi@cushwake.com

RYAN ENNIS Project & Development Services, Boston Life Sciences Lead ryan.ennis@cushwake.com

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com.