March 2025 Life Sciences Update

Philadelphia HUB MARKET

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024)

Rent vs. Vacancy Comparison

Fast Lab Stats

• Philadelphia has taken an aggressive yet measured approach to expanding real estate solutions, offering everything from serviced lab facilities and lightly serviced graduate labs to second-generation lab space, purpose-built lab buildings and spec suites. While spec lab suites have been available for a few years, cost-effective, second-generation lab suites are a relatively new trend, as the city was undersupplied for many years. These lab spaces account for 13.9% of the total vacancy across the region and 15.8% of the current vacancy in the city. • Over the next 12-18 months, an additional 1.7 msf of lab space will be delivered in the city. However, 45.0% of the space under construction is leased. If all market stats remain the same, this new inventory would raise overall lab vacancy to 8.8% in the region and to 14.2% in the city. These vacancy rates are high for Philadelphia but are favorable when compared to oversupplied East Coast hubs, where vacancy rates exceed 20.0% and are expected to continue to grow. • Investors prioritize financial flexibility for their portfolio companies while focusing investment on companies with more advanced IP development and later-stage clinical trials. Over the next 24 months, Phase 2 and Phase 3 clinicals account for 64.0% of all 1,115 expected clinical completions. VC spending has followed and increased 69.7% YOY, setting a new post-pandemic high. Biotech companies are also being pressured to narrow their scientific focus and advance a smaller number of potential therapies through clinical trials. As a result, clinical starts have decreased 41.4% YOY, with the largest declines occurring in phases that take longest to complete.

$ Raised (MM)

Company

Deal Type

Completed VC Round

22.4 MSF Market Square Footage $52.63 $ Per SF 4.5% Vacancy 50.6K Total Life Sciences Employment 20.1% Life Sciences Employment 10-Year Growth Rate

$60

8%

Third Arc Bio

Early Stage VC Ju -2024 2nd Round

$165.0

$50

Synnovation Therapeutics

Early Stage VC Jan 2024 3rd Round

$102.0

6%

$40

Vacancy Rate

Interius

Early Stage VC Jun 2024 3rd Round

$67.0

Vitara (Healthcare Services)

$30

4%

Later Stage VC Nov 2024 3rd Round

$50.0

$20

GEMMABio

Seed Round

Dec 2024 1st Round

$34.0

2%

Imvax

Later Stage VC Mar 2024 5th Round

$34.0

$10

Average Asking Rent $/sf

Brenig Therapeutics Early Stage VC Jul 2024 2nd Round

$30.0

$0

0%

Cagent Vascular

Later Stage VC Jan 2024 5th Round

$28.7

2015 2017 2019 2021

2023

ViTToria Biotherapeutics

Asking Rents

Overall Vacancy

Sublease Vacancy

Early Stage VC Nov 2024 3rd Round

$25.0

Seed Therapeutics

Later Stage VC Aug- 024 1st Round

$24.0

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

1,400

Brandywine Realty Trust

Quaker Chemical

250 King of Prussia Road

119,000 New

Lab

Q4

AstraZeneca

North America HQ

1,200

Century Therapeutics Amicus Therapeutics

Main Street Capital

DSM Biomedical

400 Devon Park Drive

77,000 New

Lab

Q1

Research Facility/HQ

1,000

MLP Ventures

Franklin Bio Labs

Discovery Labs

70,000 Sublease

Lab

Q4

Research Facility

EQT Exeter

Endo Pharmaceuticals

9 Great Valley Parkway

58,700 Sublease

Office

Q2

800

GlaxoSmithKline Research Facility

Beacon Capital

Nucleus Radio Pharma.

S.H.I.P. Building 14

48,000 New

cGMP

Q3

600

Research Facility/ Regional HQ

J&J/Janssen

Code Bio

727 Norristown Road

23,000 New

Lab/Office

Q2

Beacon Capital

400

Ensemble Real Estate

Ghost Robotics

1201 Normandy Place

21,821 New

Lab

Q4

Teva Pharmaceuticals

Research/US HQ

200

Nava Therapeutics

2929 Arch Street

2,000 New

Lab

Q1

B.Labs

Endo

Research Facility

Third Arc Bio

3675 Market Street

1,000 New

Lab

Q1

Cambridge Innovation Center

0

Merck

Research Facility/HQ

2020 2021

2022

2023 2024

Incyte

Research Facility/HQ

Hires Unique Postings

Roche/Spark Therapeutics

HQ/Research Facility/Manufacturing

Top NIH-Funded Institutions (2020-2024)

Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions

$3.3B University of Pennsylvania $793M

$396M Temple University

Drexel University Temple University

2013 4,164 2023 5,269 Up 27%

• • • • •

University of Delaware University of Pennsylvania St. Joseph’s University - University of the Sciences

Research Contributors

Children’s Hospital of Philadelphia (CHOP)

Michael Hanes Michael.Hanes@cushwake.com

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

Cushman & Wakefield

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