March 2025 Life Sciences Update

Rent Growth Slowed to 3%

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CONTENTS

• Overall asking rent growth has softened year-over-year (YOY). Growth remained positive at an average of 3% across the markets in this chart. Asking rents are still 22% higher than in 2022. • Despite the deceleration in asking rents, four markets posted strong double-digit rent growth YOY: Denver (+26%), Los Angeles Orange County (+18%), Chicago (+13%), and Cambridge, UK (+10%). • Asking rents declined YOY in four of the 16 markets: New York City (-14%), Boston (- 11%), San Diego (-3.6%), and Philadelphia (-1.1%). • The increase in available vacant sublease space in many of these markets has applied downward pressure on asking rents, as sublease space is typically priced below direct space. • Softer demand and an increase in vacant sublease space translated to lower asking rents in some markets. However, strong appetite for highly amenitized, newly constructed Class A space is expected to push asking rents higher as a significant amount of new space delivers through 2025.

Q4 2024 Change Q4 2024 vs. Q4 2023 (RHS)

Change Q4 2024 vs. Q4 2022 (RHS)

$175

120%

100%

$150

80%

$125

60%

$100

40%

$75

Change in Overall Asking Rents

20%

Overall Average Asking Rent (psf)

$50

0%

$25

-20%

$0

-40%

Markets with Rent Declines in H1 2024

* Rents adjusted to reflect occupier costs of office to lab conversion

Source: Cushman & Wakefield Research; RHS=Right Hand Side

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Cushman & Wakefield