March 2025 Life Sciences Update

Seattle

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024)

Rent vs. Vacancy Comparison

Fast Lab Stats

• Over 150 companies in the life sciences industry, primarily in the biotechnology and drug discovery fields, are headquartered in the Puget Sound region. Nearly $450 million was raised in VC funding for local firms in 2024. In April 2024, publicly traded Danish drugmaker Genmab acquired Seattle-based biotech firm ProfoundBio in a $1.8 billion deal. • The region’s life sciences inventory is mainly situated in the submarkets of Lake Union in downtown Seattle and Bothell in the Eastside. Lake Union features 5.2 msf of inventory, 22.5% vacancy, and triple net rents ranging from $70-90 psf. Bothell comprises 2.5 msf of inventory, 8.5% vacancy, and triple net rents in the low- to mid- $20s (and in the $40-$50s for high-end lab spaces.) • Recent sales have bolstered interest in the Lake Union submarket. Local cancer research institute Fred Hutch purchased 1165 Eastlake Ave. E from Alexandria Real Estate Equities (ARE) for nearly $150 million. Fred Hutch also acquired Clarion's 70% stake in 1201 and 1208 Eastlake Ave. E, where ARE owns the remaining 30%, for an undisclosed sum. • The Bothell submarket had biotech tenant activity, with Bristol Myers Squibb (83,000 sf) and IonQ (36,000 sf) signing significant deals. Investors are focused on Bothell for capital and expansion. Since 2020, ARE has invested over $483 million in 1.6 msf of space in the submarket. • Over 1.3 msf of new lab development and office-to-lab conversions have entered the market since 2021. Notable conversions include Boren Labs, 330 Yale, and Unison Elliott Bay in downtown Seattle, and Sana Bio's 80,000-sf renovation project in Bothell, which will serve as a manufacturing facility. Softer demand has led to several new developments being put on hold indefinitely, including BioMed's T6 Innovation Center. In April 2024, ARE’s 701 Dexter, on hold since September 2023, resumed work and is slated for a 2025 delivery.

$ Raised (MM)

$80

21%

Company

Deal Type

Completed VC Round

10.2 MSF Market Square Footage $61.77 $ Per SF 19.4% Vacancy 24.7K Total Life Sciences Employment 91.3% Life Sciences Employment 10-Year Growth Rate

$70

18%

Outpace Bio

Early Stage VC Jul 2024 3rd Round $144.0

$60

ProfoundBio

Later Stage VC Feb 2024 4th Round $112.0

15%

Vacancy Rate

InduPro

Early Stage VC Jun 2024 2nd Round $85.0

$50

12%

Arzeda

Later Stage VC Jul 2024 5th Round

$38.0

$40

9%

Viome Life Sciences

Later Stage VC Aug 2024 5th Round

$25.4

$30

Archon Bio

Seed Round

Oct 2024 1st Round

$20.0

6%

$20

LumiThera

Later Stage VC Nov 2024 6th Round

$8.1

3%

$10

Average Asking Rent $/sf

Lithos Carbon

Seed Round

May 2024 1st Round

$6.0

$0

0%

RareCyte

Later Stage VC Jun 2024 9th Round

$6.0

2015 2017 2019 2021

2023

Healionics

Later Stage VC Apr 2024 7th Round

$5.5

Asking Rents

Overall Vacancy

Sublease Vacancy

Representative Investment Sale Transactions (2024)

Address

Type

$/psf

$ MM RBA SF

Date

Buyer

330 Yale Ave N

Investment

$777

$161.8 208,066

7/12/2024 KKR

1165 Eastlake Ave E

Investment

n/a

$150.0 100,086

9/12/2024 Fred Hutch

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

1201-1208 Eastlake Ave E Investment

n/a

n/a

211,363

9/13/2024 Fred Hutch

Company

Type

1,000

Fred Hutchinson Cancer Research Center

HQ

800

Bristol Myers Squibb

Research Facility

600

Seagen

HQ

Representative Lease Transactions (2024)

Allen Institute

Research Facility

400

Benaroya Research Institute

Company

Address

Size (SF) New/Renewal

Type

Quarter Landlord

Research Facility

200

Bristol Myers Squibb Philips Medical Systems – Bldg C

82,968 New

Life Science

Q2 Phillips Medical Systems

AGC Biologics

Research Facility

0

Allen Institute (AI2)

Northlake Commons

40,286 New

Life Science

Q1

HessCallahanGrey Group

Adaptive Biotechnologies

HQ

2020 2021

2022

2023

2024

Freedom eCommerce Monte Villa Ctr

26,073 Sublease

Life Science

Q2 Ditty Properties

NanoString Technologies

Hires Unique Postings

HQ

Gilead Sciences

Regional Office

Sana Biotechnology

HQ

$2.8B University of Washington $2.3B Fred Hutchinson Cancer Research Center Top NIH-Funded Institutions (2020-2024)

Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions

University of Washington Seattle Pacific University

2013 2,479 2023 2,641 Up 7%

• • •

$520M Seattle Children’s Hospital

Seattle University

Research Contributors

Brian Cagayat brian.cagayat@cushwake.com

Mckinley Fox-Cowart mckinley.foxcowart@cushwake.com

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

Cushman & Wakefield

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