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

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

10

Cushman & Wakefield