March 2025 Life Sciences Update

Denver

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

Fast Lab Stats

$ Raised (MM)

• Denver is a hub for life sciences activity, primarily due to the region’s innovative research facilities and its increasing track record of startup success in the sector. The industry’s proliferation in the region has led to an influx of venture capital and government funding over the past several years. • Due to ongoing economic pressures on the industry and uncertain funding for many of the companies looking to expand, life sciences leasing activity remained low through the balance of 2024, with the year-end totaling less than 47.8% of the 2023 year-end value. • While several large users have facilities under construction in the Denver-Boulder market, speculative development remains in its nascency in the area, particularly for lab space. However, two buildings totaling 81,400 delivered in the second half of 2024: a new speculative office with included R&D lab space and an old flex facility that was converted to lab space. • Despite the minor uptick in leasing activity in the second half of 2024, an influx of negative absorption coupled with the relatively small market size resulted in the vacancy rate doubling, jumping from 7.7% in June to 15.5% at the end of the year. However, with several larger deals expected to occupy in early 2025 and demand showing signs of a possible recovery, it is likely that the vacancy rate may compress in the first half of 2025. • The rising cost of capital put a damper on investment activity across all major sectors of the commercial real estate market, including life sciences. As a result, there were no life sciences investment sales recorded in 2024.

Company

Deal Type

Completed VC Round

$30

20%

5.9 MSF Market Square Footage $26.03 $ Per SF 15.5% Vacancy 8.8K Total Life Sciences Employment 37.9% Life Sciences Employment 10-Year Growth Rate

Enveda Biosciences

Later Stage VC Jun 2024 3rd Round

$174.0

$25

16%

Enveda Biosciences

Later Stage VC Nov 2024 4th Round

$130.0

Vacancy Rate

$20

Synergy Spine Solutions

Later Stage VC Jan 2024 3rd Round

$30.0

12%

$15

Matter (Services (B2C Non-Financial))

Later Stage VC Feb 2024 4th Round

$26.0

8%

$10

Ambrosia Biosciences Early Stage VC Dec 2024 1st Round

$25.0

4%

Eximis Surgical

Later Stage VC May 2024 3rd Round

$15.3

$5

Average Asking Rent $/sf

OncoVerity

Early Stage VC Dec 2024 2nd Round

$14.0

$0

0%

Ajna BioSciences

Seed Round

Jun 2024 1st Round

$9.0

2015 2017 2019 2021

2023

Asking Rents

Overall Vacancy

Sublease Vacancy

Think Bioscience

Seed Round

May 2024 2nd Round

$6.0

Flagship Biosciences Later Stage VC Feb 2024 3rd Round

$5.0

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

- 100 200 300 400 500 600 700 800 900

Undisclosed

111000 Broomfield Lane

68,676 New

Direct

Q1

Morgan Stanley

Medtronic

Regional Office

DNA Technologies

2425 - 2555 55th Street

48,000 New

Expansion

Q2

Washington Capital Management

Pfizer

Research Facility

Eli Lilly

Research Facility

Hyde Engineering & Consulting 1450 Infinite Drive

17,500 New

Direct

Q2

Washington Capital Management

Agilent Technologies Research Facility

Bioloomics

2425 - 2555 55th Street

13,321 New

Direct

Q2

Washington Capital Management

Terumo BCT

HQ

AGC Biologics

Research Facility

Biodesix

HQ

R&D and Manufacturing

2020 2021

2022

2023 2024

KBI Biopharma

Hires Unique Postings

Enveda Biosciences

HQ

Top NIH-Funded Institutions (2020-2024)

Bio Degree-Awarding Institutions, Metro Area University of Colorado – Denver University of Colorado – Boulder

Annual Life Sciences Degree Completions 2013 961

•

$1.6B University of Colorado Denver $278M University of Colorado $176M National Jewish Health

•

2023 1,527 Up 59%

Colorado State University Colorado School of Mines

• •

Research Contributors

Cara Rasachak cara.rasachak@cushwake.com

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

Cushman & Wakefield

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