Life Sciences on the Rise: 2021 North American Report

MARKET SUMMARY • Raleigh/Durham comprises one of the world’s largest life sciences clusters, consisting of over 600 companies employing over 38,000 skilled workers. The Research Triangle Park is home to many of those companies including life sciences giants Pfizer, Novo Nordisk, Fuji Diosynth, IQVIA, PPD and Biogen. • Life sciences companies are drawn to the market because of the robust talent pool available from the market’s three Tier 1 research universities. In addition to education, low cost of living and geographic advantages makes RDU a global leader in life sciences and biotechnology. • The market has traditionally been suburban focused for life sciences occupiers. A new trend is emerging, drawing lab users to downtown. In recent years,downtown Durham has developed pockets of urban lab options largely fueled by the demand of Duke University. That anchor demand has allowed other non- affiliated anchored lab spaces to succeed in the Central Business District. • Users of life sciences space continued to grow despite the tempered demand for office space over the last year. With low supply, there is a rush for developers/owners to step into the life sciences space to provide more options. It is too soon to tell if developers who have not worked in this sector previously can break into this highly-specialized industry.

FAST LAB STATS 10.4 MSF MARKET SQUARE FOOTAGE $25-$35 $ PER SF NNN 15.4%* VACANCY 20.1K TOTAL LIFE SCIENCES EMPLOYMENT & TALENT POOL +80% LIFE SCIENCES EMPLOYMENT GROWTH RATE SINCE 2001

* Including active lab conversion projects

REPRESENTATIVE LIFE SCIENCES COMPANIES

LIFE SCIENCES TALENT POOL

12,000

11,281

COMPANY

TYPE

11,000

Novartis (Avexis)

Other – cGMP

10,000

Q2 Solutions (IQVIA)

HQ

9,000

Seqirus

Other – cGMP

8,000

Raleigh / Durham ThermoFisher Regional Office & cGMP LabCorp HQ Number of Persons 6,000 7,000 Nu ber f er

Average Annual Growth Rate 2001-2020: 1.9%

Fujifilm Diosynth Biotechnologies Novo Nordisk Pharmaceutical Industries

HQ

2011

2017

2012

2021

2015

2013

2018

2016

2019

2014

2001

2010

2007

2002

2020

2005

2003

2008

2006

2009

2004

Raleigh/Durham

Talent pool includes life science professionals not currently employed in the life science sector Source: EMSI

Other - cGMP

Pfizer

Other - cGMP

BIO DEGREE-AWARDING INSTITUTIONS, METRO AREA • North Carolina State University • Duke University • University of North Carolina Chapel Hill

Regional Office/R&D Lab

GSK

United Therapeutics

Co-HQ

TOP NIH-FUNDED INSTITUTIONS (2016-2020)

DUKE UNIVERSITY $2.5B

UNIVERSITY OF NORTH CAROLINA CHAPEL HILL $2.3B

RESEARCH TRIANGLE INSTITUTE $678M

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