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research facilities, R&D and manufacturing (i.e., pharmaceutical production). Each subtype caters to a different segment of overall life science users, tenants and companies. • Transportation Infrastructure: Logistical considerations come into play just as they would for a potential warehouse property. In many cases the tenant will look for a property along key transportation routes to support distribution access for their products. Properties with proximity to airports, university medical campuses and clinics will garner stronger interest from life sciences firms. Linking specifically to target clientele considerations, cell and gene pharma are very different from other bioscience and pharma companies. For example, the shelf life of cell gene drugs is quite short, and such products cannot be shipped all over the world. Accordingly, smaller regional life sciences hubs with strong access to distribution infrastructure are arising to service a regional area for cell and gene therapy. • Clusters & Talent: Proximity to talent and location within a market and submarket also differentiates potentially successful life sciences

conversion candidates. Access to highly specialized labor is often key for life sciences tenants, and not all markets or submarkets offer the pool of talent for a given life sciences cluster or specialty. For example, the San Francisco Bay area and Boston possess the largest employment bases and consequently the largest life sciences inventory, as shown in chart 21. New York City offers one of the largest life sciences employment bases because of its concentration of large research institutions. However, the resurgence in investment-grade lab and current good manufacturing practice (cGMP) space is still in the early stages there; the relatively tight market could be supportive of repurpose projects as a result. • Understanding and Defining the Target Clientele: As part of the evaluation process, it is also critical to evaluate the target clientele for the given property. Startups, mid-caps and big pharma companies each focus on vastly different space profiles, the former often underserved and looking for 7,500 – 12,000 sf while the latter tends to take larger blocks of space.

CHART 21: CORRELATION BETWEEN TALENT & LAB SPACE Life Sciences Inventory & Employment Pool, Select Markets

50

San Francisco Bay Area

45

40

35

Boston

30

Washington DC Metro

25

Philadelphia San Diego

20

15

New Jersey

Raleigh/Durham

10

Denver

Los Angeles

London Life Sciences Inventory (MSF)

Seattle

5

Chicago

Cambridge

New York City

Oxford

0

0

20

40

60

80

100

120

Employment Pool (Thousands)

Source: Lightcast, Cushman & Wakefield Research

The Next Evolution of Office and How Repositioning and Repurposing Will Shape the Future | 35