March 2025 Life Sciences Update

Venture Capital Funding and Leasing Activity Are Closely Aligned

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CONTENTS

Four-Quarter Rolling Average

• There is a strong correlation between VC funding for life sciences companies and total leasing activity in the U.S. Significant increases in funding often align with higher leasing activity, suggesting that as VC capital flows into the market, leasing activity tends to rise. Conversely, when VC capital contracts, leasing activity typically follows suit. relationship between capital raised and space leased. Companies currently raising capital are generally in the late stages of development, with capital primarily allocated to clinical trials. • For leasing activity to pick up, VC capital flows will need to increase further to allow more companies to plan capital expenditures that involve leasing new space. • In recent quarters, there has been an inverse

Seed to Early Stage

Later Stage

Total Leasing (RHS)

Linear (Later Stage)

Linear (Total Leasing (RHS))

$7

7

$6

6

$5

5

$4

4

Total Leasing (MSF)

VC Funding (in $billions)

$3

3

$2

2

$1

1

$0

0

2021 Q1

2021 Q2

2022 Q1

2021 Q3

2023 Q1

2021 Q4

2024 Q1

2020 Q1

2022 Q2

2022 Q3

2023 Q2

2023 Q3

2022 Q4

2024 Q2

2023 Q4

2024 Q3

2020 Q2

2020 Q3

2024 Q4

2020 Q4

Source: PitchBook Data, Inc.; *Data has not been reviewed by PitchBook analysts, Cushman & Wakefield Research; RHS=Right Hand Side

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Cushman & Wakefield