March 2025 Life Sciences Update

Raleigh-Durham HUB MARKET

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024)

Rent vs. Vacancy Comparison

Fast Lab Stats

• North Carolina is home to one of the world's largest life sciences clusters, with 898 life sciences companies — 659 of which are in Research Triangle Park in Raleigh-Durham. • A robust talent pool and pipeline from top-tier research universities in the region, as well as a low cost of living, make Raleigh-Durham one of the premier life sciences hubs in the United States. Significant job announcements and investment into the region have come from a diverse sector of life sciences companies, including Amgen, which recently announced a $1 billion expansion in Holly Springs. • In addition to the 13.0 msf of existing life sciences inventory, 2024 ended with no new projects under construction and 9.7 msf in the proposed pipeline. Some proposed product is speculative, while other properties labeled as life sciences could be built as other property types. • Rental rates have been relatively stable over the last few quarters and are expected to remain stable in 2025. • Raleigh-Durham is a major recipient of NIH funding, with the top five funded being Duke University, the University of North Carolina at Chapel Hill, the Research Triangle Institute, Family Health International and North Carolina State University.

$ Raised (MM)

$45

0% 3% 6% 9% 12% 15% 18% 21% 24% 27% 30% 33% 36%

Company

Deal Type

Completed VC Round

13.0 MSF Market Square Footage $39.20 $ Per SF 31.8% Vacancy 37.8K Total Life Sciences Employment 53.7% Life Sciences Employment 10-Year Growth Rate

$40

Areteia Therapeutics Early Stage VC Feb 2024 1st Round

$425.0

$35

Pathalys Pharma

Early Stage VC Aug 2024 3rd Round

$105.0

$30

Vacancy Rate

restor3d

Later Stage VC Jun 2024 6th Round

$70.0

$25

Addyi

Later Stage VC Dec 2024 8th Round

$45.6

$20

Elo Life Systems

Early Stage VC Jan 2024 2nd Round

$20.5

$15

Tolerance Bio

Seed Round

Dec 2024 1st Round

$20.2

$10

Codetta Bio

Early Stage VC Oct 2024 3rd Round

$12.3

Average Asking Rent $/sf

$5

Avalo

Early Stage VC May 2024 3rd Round

$12.0

$0

Medicom (Medical Records Systems)

Later Stage VC Jul 2024 3rd Round

$9.0

2015 2017 2019 2021

2023

Asking Rents

Overall Vacancy

Sublease Vacancy

Avicenna Biosciences Early Stage VC Feb-2024 3rd Round

$6.0

Representative Investment Sale Transactions (2024)

Address

Type

$/psf

$ MM

RBA SF

Date

Buyer

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Lab

$33.0

Q3

United Therapeutics

78 TW Alexander

$345.55

95,000

Company

Type

1,000 1,200 1,400

Novartis (Avexis)

Other – cGMP

Q2 Solutions (IQVIA) HQ

Representative Lease Transactions (2024)

0 200 400 600 800

Seqirus

Other – cGMP

Company

Address

Size (SF)

New/Renewal

Type Quarter

Landlord

Regional Office & cGMP

ThermoFisher

Metabolon

617 Davis Drive

55,213

Renewal

Lab

Q3

Longfellow Real Estate Partners

LabCorp

HQ

Solvias

2400 Perimeter Park Drive

50,598

New Lease

Lab

Q2

Longfellow Real Estate Partners

Fujifilm Diosynth Biotechnologies

HQ

Lab

EPL

615 Davis Drive

42,545

Renewal

Q2

Longfellow Real Estate Partners

2020 2021

2022

2023 2024

Lab

BioMason, Inc.

2 Triangle Drive

30,335

Renewal

Q4

Larry Booth

Hires Unique Postings

Novo Nordisk

Other - cGMP

Traitology

104 TW Alexander Drive

30,300

New Lease

Q1

Alexandria Real Estate Equities, Inc.

Lab

Pfizer

Other - cGMP

Bio Degree-Awarding Institutions, Metro Area

Cintas Corporation No.2

215 Southport Drive

24,640

New Lease

Q3

Trinity Capital Advisors

Lab

Regional Office/R&D Lab

GSK

Ionna, LLC

4022 Stirrup Creek Drive

24,597

New Lease

Q2

Goldman Sachs

Lab

Campbell University Central Carolina Community College Durham Technical Community College Meredith College North Carolina Central University Duke University

North Carolina State University

• •

•

United Therapeutics Co-HQ

Vulcan Elements, Inc.

12 TW Alexander Drive

20,750

Sublease

Q3

Old Battleground Properties, Inc.

Lab

Shaw University

• • •

St Augustine’s University

• •

Spoonflower

2810 Meridian Pkwy

19,290

Renewal

Q3

Accesso Partners

Lab

University of North Carolina Chapel Hill Wake Technical Community College

Top NIH-Funded Institutions (2020-2024)

Trio Labs, Inc.

133 Southcenter Court

15,505

Renewal

Q4

Trinity Capital Advisors

Lab

• •

•

Avazyme, Inc

3908 Patriot Drive

15,117

New Lease

Q3

Wexford

Lab

$3.2B Duke University $2.7B

$1.9B Research Triangle Institute

William Peace University

•

2023 3,663 Up 37%

2013 2,678

Annual Life Sciences Degree Completions

Research Contributors

University of North Carolina Chapel Hill

JP Price jp.price@cushwake.com

Madelyn Davis Madelyn.davis@cushwake.com

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

Cushman & Wakefield

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