Life Sciences on the Rise: 2021 North American Report

MARKET SUMMARY • At over 38 msf of lab inventory, San Francisco Bay, a founding region of the biotechnology industry, continues to experience aggressive industry expansion by its occupancy base. • The San Francisco Bay Area’s highly educated workforce, coupled with proximity to elite research institutions such as UCSF, Stanford and UC Berkeley has made the Bay Area one of the most elite and active Life Sciences clusters in the world. • The world’s largest life sciences venture capital and private equity concentration has been key in funding growth companies across the Bay Area. • Biotechnology and pharmaceuticals represent most of the life sciences leasing activity in the market, though the medical device and health tech sectors are extremely active as well. • Demand has been driven by companies from early-stage startups through the largest life sciences companies and there is no sign of a slowdown in sight. • Market demand has created a continually landlord-favorable market with developers responding with 5.2 msf of deliveries over the last six years, 3.0 msf presently under construction and more than 16 msf at various stages of planning, with both the current and planned construction dominated by speculative projects—both ground-up and conversions from office. • The majority of life sciences product in the Bay Area is located across three major markets: San Francisco proper, the San Francisco Peninsula, and the East Bay.

FAST LAB STATS 38.5 MSF MARKET SQUARE FOOTAGE $53.52 $ PER SF NNN 10.87% VACANCY 58.5K TOTAL LIFE SCIENCES EMPLOYMENT & TALENT POOL +107% LIFE SCIENCES EMPLOYMENT GROWTH RATE SINCE 2001

REPRESENTATIVE LIFE SCIENCES COMPANIES

LIFE SCIENCES TALENT POOL

16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000 34,000

COMPANY

TYPE

Gilead Sciences

HQ (Foster City)

27,387

BioMarin Pharmaceutical HQ (San Rafael)

Amgen

HQ (Thousand Oaks)

Number of Persons u ber of Persons

Regional Office (S. San Francisco)

Average Annual Growth Rate 2001-2020: 1.6%

Genentech

Regional Office (Berkeley)

Bayer

2011

Exelixis

HQ (Alameda)

2017

2012

2021

2015

2013

2018

2016

2019

2014

2001

2009 Bay Area 2010

2007

2002

2020

2005

2003

2008

2006

2004

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

Zymergen

HQ (Emeryville)

Regional Office (S. San Francisco)

AbbVie

San Francisco Bay Area TOP NIH-FUNDED INSTITUTIONS (2016-2020) BIO DEGREE-AWARDING INSTITUTIONS, METRO AREA • Stanford University • University of California (Berkeley) • University of San Francisco Illumina Regional Office (Foster City) Bristol Myers Squibb Regional Office (Redwood City)

UNIVERSITY OF CALIFORNIA, SAN FRANCISCO $3.2B

STANFORD UNIVERSITY $2.5B

UNIVERSITY OF CALIFORNIA BERKELEY $672M

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