March 2025 Life Sciences Update

Suburban Maryland (I-270 Corridor) HUB MARKET

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024)

Rent vs. Vacancy Comparison

Fast Lab Stats

• Suburban Maryland, referred to as the BioHealth Capital Region (BHCR) has nearly 12.5 msf of laboratory space that benefits from its proximity to federal agencies, including the NIH, National Institute of Allergy and Infectious Diseases (NIAID) and the Food and Drug Administration (FDA). Government funding has fostered innovation and the development of new therapies and technologies, and because of this, the BHCR has remained a top-tier life sciences cluster. • Biotech and pharmaceutical companies have established their presence in this corridor and continue to invest in Maryland. Last year, AstraZeneca expanded its regional presence by nearly 300,000 sf and will invest another $300 million in their manufacturing operations. • Although demand has slowed, smaller and mid-tiered companies continue to seek value in existing conditions, second generation/sublease space. While leasing activity is not as robust given macro market conditions, nearly 30% of the spec lab space on the market has been leased. • Despite vacancy rates increasing to 14.0%, suburban Maryland’s supply is not as overbuilt as other top markets, given the overall inventory and size. Rents for R&D space in Montgomery County average from $40-$45 psf NNN, and we anticipate rents to hover in this range until current supply and demand equalize. • The market has faced challenged as life sciences companies go bankrupt or lose funding, bringing space back to the market. With no new supply coming online, the focus is on absorbing existing inventory. However, there is optimism that continued investment from NIH and other government contracts will spur expansion of existing companies and startups.

$ Raised (MM)

$50

16%

Company

Deal Type

Completed VC Round

12.5 MSF Market Square Footage $43.45 $ Per SF 14.0% Vacancy 44.5K Total Life Sciences Employment 33.9% Life Sciences Employment 10-Year Growth Rate

$45

14%

Clasp Therapeutics

Early Stage VC Mar 2024 1st Round $150.0

$40

12%

Vacancy Rate

MaximBio

Grant

Jan 2024

$49.5

$35

10%

miRecule

Later Stage VC Jul 2024 7th Round

$30.0

$30

$25

8%

RoosterBio

Later Stage VC Jul 2024 5th Round

$12.0

$20

MultiplexDX

Later Stage VC Oct 2024 2nd Round

$11.1

6%

$15

Sunstone Therapies

Seed Round

Jul 2024 2nd Round

$8.5

4%

$10

MaximBio

Grant

Feb 2024

$4.4

Average Asking Rent $/sf

2%

$5

Immunomic Therapeutics Later Stage VC Apr 2024 8th Round

$3.0

$0

0%

Amplexd Therapeutics

Early Stage VC May 2024 1st Round

$2.0

2015 2017 2019 2021

2023

Asking Rents

Overall Vacancy

Sublease Vacancy

Representative Investment Sale Transactions (2024)

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Address

Type

$/psf

$ MM

RBA SF

Date

Buyer

Flex

$5.0M

9119 Gaither Rd

$197.92

25,263 10/29/2024 Meso Scale Diagnostics

Company

Type

1,800

AstraZeneca

Research Facility

1,600

GlaxoSmithKline Research Facility

1,400

Arcellx

Headquarters

Representative Lease Transactions (2024)

1,200

ThermoFisher Scientific KitePharma (Gilead)

Regional Office

Company

Address

Size (SF) New/Renewal

Type

Quarter Landlord

1,000

Regional Headquarters

800

GlaxoSmithKline

9911 Belward Campus Dr

289,912 Renewal

Direct

Q2 CalPERS

600

Supernus

Headquarters

Precision For Medicine

8425 Precision Way

75,240 Renewal/Expansion Direct

Q2 St. John Properties

Qiagen

US Headquarters

400

AbelZeta

9605 Medical Center Dr

27,639 New Lease/Expansion Direct

Q2 Alexandria Real Estate Equities

MilliporeSigma (BioReliance) Emergent BioSolutions

200

Research Facility

7495 New Horizon Way 25,000 New Lease

Direct

Q1

Valogic

Theradaptive

0

2020 2021

2022 2023 2024

Headquarters

Biontech

25 W Watkins Rd

22,930 New Lease

Sublease

Q1

Alexandria Real Estate Equities

Hires Unique Postings

REGENXBIO

Headquarters

AstraZeneca

15010 Broschart Rd

19,102 New Lease

Sublease Q3 Alexandria Real Estate Equities

Biofactura

8435 Progress Dr

17,520 Renewal/Expansion Direct

Q1

St. John Properties

Top NIH-Funded Institutions (2020-2024)

Bio Degree-Awarding Institutions, Metro Area

Annual Life Sciences Degree Completions

Cartesian Therapeutics

7495 New Horizon Way

17,500 New Lease

Direct

Q1

Valogic

UBriGene Biosciences

20400 Century Blvd

10,309 New Lease

Direct

Q2 Alexandria Real Estate Equities

2013 3,737 2023 4,178 Up 12%

$4.2B Johns Hopkins University $2.8B Leidos Biomedical Research, Inc.

$1.1B University of Maryland Baltimore

Johns Hopkins University Montgomery College University of Maryland - Institute for Bioscience & Biotechnology Research

• • •

American Type Culture Collection 20440 Century Blvd

9,583 New Lease/Expansion Direct

Q2 Rock Creek Property Group

Research Contributors

Nathan Edwards nathan.edwards@cushwake.com

Chris Whittle christopher.whittle@cushwake.com

Lauren Kraemer lauren.kraemer@cushwake.com

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

Cushman & Wakefield

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