March 2025 Life Sciences Update

Chicago

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024)

Rent vs. Vacancy Comparison

Fast Lab Stats

$ Raised (MM)

• Life sciences companies are taking note of Chicago’s world -class research universities, talent pipeline, robust network of existing companies, and its competitive cost compared to other major life sciences markets. • Chicago’s life sciences ecosystem has seen unprecedented growth, with substantial capital infusion and the development of funding and mentorship programs, like the University of Chicago Innovation Fund and Chicago Biomedical Consortium’s Entrepreneurial Fellows program. Chicago was chosen as the second location of the Chan Zuckerburg Biohub Network, an investment that will propel development and job growth. • Notable recent developments include Trammell Crow’s Evanston Labs, located at 710 Clark St. in suburban Evanston, which delivered in the second quarter of 2024. The 175,000-sf development is near Northwestern University, and it has recorded significant demand with two lease transactions totaling 61,181 sf. Hyde Park Labs, located at 5201 S. Harper Ave., is currently under construction. The 302,000-sf facility is near the University of Chicago’s campus and is being developed by Beacon Capital Partners and Trammell Crow Company. • Market fundamentals continued to improve throughout 2024. Overall net asking rental rates have increased 10.4% since year-end 2023 to $56.54 psf. Due to recent construction completions over the last 12 months, overall vacancy recorded a slight increase to 20.4% from 20.1% last year. Tenant demand remained robust, with 78,558 of new leasing activity over the last 12 months.

Company

Deal Type

Completed

Type

$60

25%

8.3 MSF Market Square Footage $56.54 $ Per SF 20.4% Vacancy 40.3K Total Life Sciences Employment 7.7% Life Sciences Employment 10-Year Growth Rate

Tempus AI (NAS: TEM)

IPO

Jun 2024

$410.7

$55

20%

Cour

Later Stage VC Jan 2024

1st Round

$105.0

$50

Vacancy Rate

Advanced Medicine Partners

15%

Early Stage VC Jun 2024

1st Round

$60.0

$45

Vanqua Bio

Later Stage VC Jul 2024

3rd Round

$45.0

$40

10%

Syntax Bio

Later Stage VC Sep 2024

3rd Round

$20.0

$35

Vivacelle Bio

Later Stage VC Feb 2024

3rd Round

$20.0

5%

$30

Nucleai

Later Stage VC Apr 2024

4th Round

$14.0

Average Asking Rent $/sf

$25

0%

Synata Bio

Grant

Nov 2024

$4.5

2015 2017 2019 2021

2023

Novian Health

Later Stage VC Oct 2024

3rd Round

$3.8

Asking Rents

Overall Vacancy

Sublease Vacancy

Hydrosome Labs

Seed Round

Oct 2024

2nd Round

$3.5

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Representative Lease Transactions (2024)

Company

Type

Company

Address

Size (SF) New/Renewal

Type

Quarter

Landlord

1,600

COUR Pharmaceuticals

710 Clark Street

47,997 New Lease

N/A

Q4

Trammell Crow Company

AbbVie

HQ

1,400

Mattiq

400 North Aberdeen

17,377 New Lease

N/A

Q1

Trammell Crow Company

Abbott

HQ

1,200

CycloPure Inc

710 Clark Street

13,184 New Lease

N/A

Q4 Trammell Crow Company

Baxter International

HQ

1,000

Takeda

Regional Office

800

Amgen

Regional Office

600

Astellas Pharma

North American HQ

400

200

Luminex

Regional Office

-

Pfizer

Regional Office

2020 2021

2022 2023 2024

Lundbeck

HQ

Hires Unique Postings

Sysmex

North American HQ

Top NIH-Funded Institutions (2020-2024 1H) $2.0B Northwestern University at Chicago $1.3B University of Chicago $784M University of Illinois at Chicago

Bio Degree-Awarding Institutions, Metro Area University of Chicago Northwestern University

Annual Life Sciences Degree Completions

2013 7,796 2023 7,298 Down 6%

• • •

University of Illinois Chicago Illinois Institute of Technology

•

Loyola University Chicago

• •

DePaul University

Research Contributors

Gregory Rogalla gregory.rogalla@cushwake.com

Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook

Cushman & Wakefield

58