US Life Sciences Outlook 2017

Life Sciences
United States | 2017
An evolving industry:
Today’s clusters
creating tomorrow’s
breakthroughs
JLL Research
Life Sciences Outlook | United States | 2017
Contents
A tale of two coasts:

3
Rents continue to rise as vacancy tightens
Life sciences in 2017:

4
An industry built on innovation
The evolution of U.S. Life Sciences Clusters

5
How did we get here and where are we going?
United States life sciences landscape:

7
Rising costs, sector growth and the impact on real estate
State of the industry:

8
#1 Human capital and the demand for talent

10
#2 Lack of space and various real estate solutions

12
#3 Growing sources of capital
Summary:
13
Cluster innovation paving future of industry
Local markets 16
3 Life Sciences Outlook | United States | 2017
A tale of two coasts:

Rents continue to rise as vacancy tightens
Top U.S. submarkets Asking rent ($ NNN) Vacancy
East Cambridge (Boston) $75.05 p.s.f. 6.8%
North County (Bay Area) $58.68 p.s.f. 1.2%
I-287 West (Westchester) $52.00 p.s.f. 6.0%
Torrey Pines (San Diego) $50.40 p.s.f. 5.9%
Lake Union (Seattle) $39.37 p.s.f. 1.3%

CBD (Philadelphia) $38.00 p.s.f. 1.9%
Submarket spotlights:
Thriving Cluster Breakout Cluster Emerging Cluster
Top tier cluster further establishing Middle tier cluster making strides in Lower tier cluster with a growing life
itself as a leader for industry growth the life sciences through new sciences foundation and a platform
and world-class home for life sciences development and a growing scientific that enables long term growth
community
San Diego Long Island, NY
Philadelphia
San Diego is one of the leading life The Long Island life sciences
sciences markets in the nation. With The Philadelphia region has long landscape continues to fuel the local
Torrey Pines acting as the heart of the been home to many elite academic economy as firms emerge from world-
cluster, the market continues to see and research institutions as well as a class research facilities. Efforts to
demand for life sciences facilities, strong pharmaceutical industry. With accelerate the commercialization of
including adding over 2.4 million a growing number of life sciences and bioscience findings have been made
square feet of space since the technical companies calling the city throughout the region, particularly
beginning of 2016, and another 1.0 home, industry leaders are investing through strategic partnership efforts
million square feet in the construction heavily in supporting entrepreneurs as part of the Long Island Bioscience
pipeline. Supplemented by best-in- through a number of initiatives. Hub. As one of three such hubs in the
class landlords, San Diego is Moreover, new lab space in the CBD is country, it serves as a leading catalyst
redefining the future of suburban representative of a growing trend of of life sciences growth on Long Island.
lab campuses. urban life sciences development that
is being seen across top U.S. clusters.
Life sciences in 2017:

An industry built on innovation
1
The increasingly competitive landscape and demand for highly skilled labor has led to
sustained wage growth for life sciences employees. This trend is likely here to stay due to a
confined labor pool and need for candidates with advanced educational degrees. The
outsourcing of R&D to third parties, such as CROs, is also a strategy being widely employed.
2
In the face of a changing workforce, companies are prioritizing a location and space with
the ability to improve the well-being of their employees. With millennial interests demanding
attention in a growing war for talent, space is becoming the focus of recruitment and
companies are increasingly seeking out more amenity-rich spaces.
3
As the Big Bio industry continues to experience growth, the country’s largest biotechs have
begun to take a page out of Big Pharma’s playbook. These companies are seeking new
products through M&A and strategic partnerships, rather than through traditional R&D
efforts, in an attempt to spend more efficiently.
U.S. cluster rankings
Weighted Weighted Life sciences employment concentration:

Rank Cluster Rank Cluster
score score Weight: 20.0%
Measured as the percent of industry employment
against total metro private employment. (BLS, 2015)
1 Greater Boston 82.3 Los Angeles / Life sciences venture capital funding:
9 47.4
Orange County Weight: 15.0%
San Francisco Funding from Q4 2016 to Q3 2016 (PwC MoneyTree)
2 79.7
Bay Area Total lab supply:
10 Chicago Metro 40.1
Weight: 15.0%
3 San Diego 65.8 Minneapolis- Life sciences employment growth:
11 39.1
St. Paul Weight: 10.0%
4 Raleigh-Durham 65.4 Life sciences establishments concentration:
Westchester
12 35.3 Weight: 10.0%
County, NY
5 Philadelphia 54.7 Measured as the percent of industry establishments
13 Denver Metro 34.2 against total metro private establishments. (BLS, 2015)
Life sciences National Institutes of Health funding:
Maryland Suburbs
6 54.3 14 New York City 33.7 Weight: 10.0 %
/ DC Metro
National Institutes of Health, 2016
15 Long Island, NY 23.2 Market occupancy rate:
7 Seattle-Bellevue 48.0
Weight: 10.0%
Central & Average asking rent (NNN):
8 New Jersey 47.5 16 21.7 Weight: 10.0%
Southern FL
The evolution of U.S. Life Sciences Clusters

How did we get here and where are we going?
In an effort to boost economic activity post- The next wave of innovation struck in the 1970s. It began
World War II, cities across the U.S. started with two scientists, Herbert Boyer from UC San Francisco
and Stanley Cohen from Stanford, who discovered the
investing in life sciences. possibility of “gene splicing,” or recombinant DNA
technology. This key discovery defined the next era of the
Today, the life sciences industry has a major impact on the
industry as the use of genetic engineering greatly
economy of the United States. A national scientific
contributed to the breakthrough and production of new
community initially emerged in 1848 with the founding of
drugs. This also paved the way for the successful
the American Association for the Advancement of Science;
emergence of the Bay Area’s west coast counterpart, San
however, the next century was marked by relatively little
Diego. Their story began with the founding of research
new research and it was not until the second half of the
institutions, such as Scripps and UC San Diego, which led
20th century that the industry experienced notable new
to the city zoning the Torrey Pines submarket specifically
product development through companies building out in-
for scientific research. By the early 1980s the region saw an
house R&D programs. During this window, regional clusters
influx of complementary pieces, including patent
began to take shape. In an effort to boost economic
attorneys, recruiters, and venture capital firms. This
activity post-World War II, cities across the U.S. started
newfound support system, combined with the region’s
investing in life sciences. Through partnerships with local
talent network, put San Diego on the frontier of
governments and institutions, many have evolved into
biotech innovation.
today’s top clusters.
North Carolina was one of the first to take a leap of faith on The common theme that brings them together
life sciences investment. The initial concept was simple— is having a mixture of world-class academic
create a research park within the confines of the region’s institutions, top-notch research facilities and a
three universities: Duke in Durham, UNC in Chapel Hill and tight-knit medical community.
NC State in Raleigh. Together these universities and cities
created an economic entity known as Research Triangle
Park (RTP). In 1965 the federal government committed to a
$70-million facility, and shortly thereafter, global tech giant
IBM announced plans to build a 600,000-square-foot
research facility. Since then, more than 40,000 jobs have
been created and over 1,500 companies have been
established within the Triangle, all of which was made
possible through university and government partnerships.
While each cluster is unique, boasting different expertise development, office-to-lab conversions and renovated
across a variety of subsectors, the common theme that flexible second generation space. Low vacancy rates
brings them together is having a mixture of world-class combined with increasing tenant demand have enabled
academic institutions, top-notch research facilities and a landlords to command high asking rents. Rising rents,
tight-knit medical community. These clusters were able to R&D costs and employee wages are among the various
develop because they benefitted from having a rich life expenditures driving up operating costs and contributing
sciences foundation. Each have their own individual to the world’s largest life sciences corporations
success stories, but ultimately these institutions and the struggling to grow revenue. This is requiring executives to
talent attached to them attracted the venture capital and reassess their approach to doing business and has the
NIH funding that supports these ecosystems as well as the potential to have a widespread impact on the clusters
infrastructure necessary to succeed. Funding is further these companies inhabit.
supplemented by the willingness of local governments to
invest in the resources at their disposal. Conscious of its Overall, JLL’s 2017 U.S. Life Sciences Outlook looks to
role as the world’s life sciences epicenter, the Greater identify geographic shifts in innovation, operations and
Boston area leads by example. The Massachusetts Life investment, including an in-depth analysis of the markets
Sciences Center was established as a government-funded most actively devoting resources to the life sciences. More
investment agency responsible for implementing a specifically, we take a deeper dive into industry and real
$1 billion initiative. It offers the nation’s most estate trends, and how they are shaping the future.
comprehensive set of incentives and programs, and it
helps to create jobs and support industry advancement.
Rising rents, R&D costs and employee wages

are among the various expenditures driving up
operating costs and contributing to the world’s
largest life sciences corporations struggling to
grow revenue.
Market fundamentals also play an important role in the
development of clusters. Low vacancy is a national trend,
and regions are dealing with a lack of available space in a
number of ways. For elite global clusters such as Boston
and the Bay Area, ample investor interest and bullish
market perspectives have led to a major construction
boom. However, other markets are seeing a mix of new
History of life sciences in the U.S.
1848: 1950-1970: 1959: 1973: 1975-present:
Founding of the Rise in product Founding of Discovery of Major spike in

American development as Research Triangle recombinant DNA drug development
Association for the “Big Pharma” Park in North technology by two through genetic
Advancement of industry begins to Carolina scientists in engineering
Science form through M&A California
United States life sciences landscape:

Rising costs, sector growth and the impact on real estate
In an industry dependent on its ability to innovate, an impact beyond compressing profit margins, which in
adapting to change and uncertainty is familiar territory. turn is motivating the acquisition of smaller companies for
Organizations continue to focus on sustainable growth the sake of more efficient spending. This is in line with a
and growing revenue, but are doing so in the face of the decrease in (R&D) at larger corporations. For the past two
pressure of rising costs, regulatory hurdles and a new decades, the U.S. was considered the world’s leading
administration. Accordingly, executives are constantly innovator in the industry, providing as much as 70 to 80
looking for new business solutions. Demand for new drugs percent of global R&D funding, according to Deloitte.
is as high as its ever been, yet research remains a high risk, However, the changing industry landscape is causing a
high expense approach. Adding to the pressure, the costs shift in how funds are being allocated. Venture capital
of bringing a new product to market have never been funding and overall life sciences investment remains high,
higher. According to Deloitte, the cost to go from idea to and it has presented an opportunity for the major players
R&D to commercialization has increased to $1.54 billion to engage in niche research. Both Big Pharma and Big Bio
from $1.19 billion in 2010. Companies across the board are are looking to consolidate their focus. Rather than
heavily scrutinizing P&L statements in an effort to reduce attempting to develop drugs for multiple diseases at once,
overhead through company right-sizing, increasing cross- they are taking a more specialized approach by investing
functionality within the organization, and increasing in and acquiring smaller firms in niche markets that have a
operational efficiency. finished product that is ready to be commercialized.
So what exactly is driving sector growth? Life sciences Looking forward, industry sales are expected
industry growth is often aligned with global healthcare to rise across the board in the next few years,
expenditures, which are expected to rise to $8.7 trillion by
2020 compared to $7.0 trillion in 2015, according to
including in the pharmaceuticals, biotech and
Deloitte. This will largely be driven by improving medtech segments.
treatments in therapeutic areas as demand increases from
the United States’ aging population. Further growth Looking forward, industry sales are expected to rise across
potential is also possible through consolidation and the board in the next few years, including in the
collaboration amongst industry players as well as through pharmaceutical, biotech and medtech segments. Although
revised operating models. Moreover, the U.S. landscape growth in the global medical device and technology
continues to be reshaped by M&A activity as companies (“medtech”) segment has been stagnant in recent years, it
look to diversify their business lines. is gaining momentum and projected to grow through 2020.
This will not be without challenges though—some of the
Top clusters biggest hurdles facing medtech companies are on the
dominate VC funding 8% commercial side where companies are facing supply chain
and cost-efficiency obstacles. The pharmaceuticals sector
13% is also facing challenges as companies are up against
Top 4 Clusters
pending patent expirations and cost control efforts even as
Clusters 5-10 highly priced innovative drugs become more accepted.
Clusters 11-16 79% With these challenges in mind, the remainder of this
Source: PwC Moneytree Q4 2015-Q3 2016 report takes a look at the main priorities of life
sciences companies and their potential impact on
While some executives are facing demands from their the industry’s commercial real estate. This includes
boards and shareholders to decrease operational costs analyzing human capital, evolving real estate and the
and maximize efficiency, life sciences companies continue various sources of capital that are pouring into the
to focus on driving revenue and achieving sustainable sector’s ecosystem.
growth. The difficulty is doing so in an industry being
impacted by healthcare reform, rising costs and political
instability. Thus far, healthcare reform has not had much of

#1 Human capital and
the demand for talent
Human capital is what keeps the wheels

turning at life sciences companies, both big
and small, and it is vital to growth.
One might ask, why are these clusters distinct? While there
are many reasons, the number one answer is talent.
Human capital is what keeps the wheels turning at life
sciences companies, both big and small, and it is vital to
growth. When taking a look at how U.S. clusters initially
formed, the underlying theme for nearly all of them is
access to world-class research institutions, universities,
hospitals and the individuals that come with them. These
prestigious institutions range from the likes of the Pritzker
School of Medicine and Northwestern in Chicago, to the
Mayo Clinic and the University of Minnesota in the
Minneapolis-St. Paul metro, to MIT, Harvard and Tufts in
Boston. Accordingly, proximity to life sciences institutions
factors heavily into real estate decisions as companies
attempt to best position themselves for talent acquisition.
In the past five years, the average employee

salary has experienced 19.2% growth, and the
total number of industry institutions has
increased by 13.1%.
The total number of life sciences employees has only
grown 4.3 percent in the past five years. This relatively low
rate speaks to the lack of available workers rather than
actual industry growth. In order to counteract this
problem, some states have created training programs for
current students. For example, the Minnesota Department
of Employment and Economic Development (DEED) has a
matching grant program that enables companies to
engage four-year and two-year colleges to train workers for
specific needs and provide them with a specific skillset. In
addition to the creation of training grant programs, rising
wages are proof of the high demand that exists for
qualified individuals. In the past five years, the average
employee salary has experienced 19.2 percent growth and
the total number of industry institutions has increased by
13.1 percent. As seen in the graph on the next page, the
most notable growth is in R&D, where average wages have
reached $135,000 annually. This upward salary trend will
persist given the need for skilled workers in a labor pool
that is limited in size.
Wages for R&D employees

have grown more than
50% over the past decade
$135,311 A widespread strategy being employed,

particularly in the pharmaceuticals sector, has
been the hiring of contract research
organizations (CROs).
However, rising wages for industry employees is also
increasing the already high cost of doing business. As
discussed earlier, life sciences companies are facing a
breadth of operational challenges as they attempt to find
new ways to drive value. A widespread strategy being
employed, particularly in the pharmaceutical sector, has
been the hiring of contract research organizations (CROs).
By outsourcing research, companies are able to maximize
cost efficiency and productivity. This is a major driver of lab
space, particularly in RTP, which acts as the epicenter of
the CRO industry. This status was recently further solidified
with the announcement that Raleigh-based INC Research
will be merging with Boston-based CRO giant inVentiv
Health as part of a deal valued at $4.6 billion. The new
company will be headquartered in North Carolina and
boast 22,000 employees globally. This is a testament to the
important role of these organizations and the value they
add for major players in the life sciences industry.
Taken as a whole, it is clear that access to a deeper pool of

talent and a built-out life sciences community is what
makes these locations distinct. Companies opting to
remain in top tier clusters despite increasingly high lab
rents and R&D costs are revealing that access to talent is
the top priority for life sciences tenants. With innovation at
the forefront of the industry, the importance of human
capital is not lost.
Companies opting to remain in top tier

clusters despite increasingly high lab rents and
R&D costs is revealing that access to talent is
$85,928 the top priority for life sciences tenants.
2006
2012
2005
2007
2008
2009
2010
2011
2013
2014
2015
Source: Bureau of Labor Statistics


#2 Lack of space and various real estate solutions
Nine of the top 10 U.S. clusters currently have collaborative environment and promotes a communal
atmosphere that goes beyond your standard 9-5 campus.
single-digit direct vacancy rates.
The next generation of space is also on display in the Bay
Area. HCP, a mainstay of west coast life sciences, is in the
A lack of available labor is not the only limitation facing life
process of building out The Cove at Oyster Point in South
sciences companies as they are also burdened by a lack of
San Francisco. Currently the largest under construction
available space. Taking a look at this year’s rankings, nine
project in the world, the seven-building campus will
of the top 10 U.S. clusters currently have single-digit direct
feature a full-service amenities center that even includes
vacancy rates. How the industry is dealing with
the likes of bocce ball courts and a bowling alley. It will
exceptionally low availability varies by cluster, and it is
total close to 1 million square feet when it delivers in the
driving a variety of real estate solutions across the United
second half of 2018. New development is not limited to the
States. Even in highly competitive clusters such as Seattle-
top tier clusters, though. In Westchester County, NY, the
Bellevue, there is a dearth of ongoing development.
proposed North 60 development will encompass 60 acres
Alexandria is currently building a 289,000-square-foot
of biotech and medical space, including New York Medical
project at 400 Dexter Ave. in the cluster’s Lake Union
College’s biotech incubator and Fareri Associates’ $500
submarket, which will deliver fully leased to Juno
million, 2.0 million-square-foot biotech and medical park.
Therapeutics later this year. The city’s mayor has praised
The transit-oriented development will include 1.4 million
the project and stated that it underscores Seattle’s
square feet of R&D space while repositioning over 1.0
standing as a global hub for biotech. However, it will not
million square feet of functionally obsolete office space.
provide any relief for tenants seeking space as only one
block over 50,000 SF remains available.
New development spread across clusters
With millennial interests increasingly 3,500,000
becoming the focus of talent recruitment,
life sciences companies are adapting
3,000,000
and increasingly seeking out more
amenity-rich spaces.
2,500,000
In the face of a changing workforce, companies are
prioritizing space and a location that has the ability to
improve the well-being of their employees. With millennial 2,000,000
interests increasingly becoming the focus of talent
recruitment, life sciences companies are adapting and
1,500,000
increasingly seeking out more amenity-rich spaces. This
includes an emphasis on social spaces that are intended
for downtime and mingling amongst coworkers. 1,000,000
Accordingly, this creates a need for knowledgeable
landlords who are not only familiar with the specialized
space requirements of life sciences companies, but are 500,000
also intimate with the needs of their tenants. Major
landlords such as, Alexandria Real Estate Equities, are
redefining suburban lab space. At The Alexandria at Torrey 0
Pines, the REIT has built nout a life science campus
centered around a shared amenity center that is accessible
to all tenants. In addition to shared conference rooms, it
boasts a fitness center, a restaurant and bar, as well as an
outdoor patio area. This fosters an innovative and Source: JLL Research
In an effort to meet high demand in tight

clusters, investors across the country are
converting office space to lab space.
While we are seeing a rise in new development, investors
are exploring other real estate solutions as well. In an effort
to meet high demand in tight clusters, investors across the
country are converting office space to lab space. San
Diego’s UTC submarket has seen 1.1 million square feet of
new inventory hit the market over the past year. While this
includes some built-to-suit projects, the vast majority of
this space consists of former office buildings that were
purchased and converted into life sciences facilities.
Facing fierce competition for space and labor, today’s life

sciences developments go beyond the value of design and
infrastructure. Real estate decisions have the ability to
attract and retain talent as well as cultivate the type of
quality work environment that enables companies to
prosper. This is resulting in exciting new projects that have
the potential to redefine the future of space and even the
industry as a whole.

#3 Growing sources of capital
Talent and space are both crucial to the success of life to startups, though, extending to research entities as well.
sciences firms. However, those two elements are not made This was recently highlighted on Long Island when United
possible without the capital needed to support growth. Therapeutics, a Maryland-based biotech company,
Venture capital (VC) firms and the funding they provide are announced a strategic partnership with The Feinstein
at the heart of the life sciences ecosystem. It enables Institute, the R&D arm of Northwell Health.
further product innovation through R&D and provides
entrepreneurs with many advantages, such as access to The rising demands and continued growth
other investors, a unique network of talent, and experience
of the industry are opening the door to
in managing similar companies, and the challenges that
come with it. After a record year in 2015, VC investment capital investments for life science products
volume cooled off in 2016. However, while U.S. funding as a and solutions, as well as driving the need for
whole dropped off 20 percent, life sciences funding only lab space.
decreased by 8 percent and received the second most
funding behind the software industry. Most importantly, larger companies reinvesting back into
the industry are enabling the growth of clusters, not only in
Strategic partnership for the purpose of drug terms of industry advancement but also in terms of life
development is a trend that is becoming sciences infrastructure. The rising demands and continued
growth of the industry are opening the door to capital
increasingly popular. investments for life science products and solutions, as well
as driving the need for lab space. Money is increasingly
However, venture funding is not the only game in town in
flowing into the sector and investors are identifying the
terms of sources of capital. Strategic partnership for the
value this is creating for the related real estate assets.
purpose of drug development is a trend that is becoming
While institutional capital had already started being
increasingly popular. While this is nothing new in the world
invested, the key moment came last year when the world’s
of Big Pharma, this strategy is spilling over into Big Bio as a
largest private equity real estate firm, The Blackstone
result of the growing cash reserves of companies. This has
Group, acquired BioMed Realty (BMR), the largest provider
inflicted newfound pressure on them to maintain growth
of real estate solutions in the life sciences community.
and has led to the country’s largest biotechs taking a page
BMR’s 18.9 million-square-foot portfolio was purchased for
out of Big Pharma’s playbook by seeking out new products
$8 billion and has assets spread across 12 of JLL’s top
through M&A and partnerships. This notion is supported by
clusters. These high quality properties boast low vacancy
the fact that Big Bio companies only increased R&D
rates, credit tenants and long lease terms, and in turn they
spending by 10 percent last year compared to the biotech
are generating growing cash flows. For the time being, core
sector as a whole which increased spending by 28 percent,
investor interest is primarily limited to the premier clusters;
according to EY. This gap reveals that Big Bio is taking a
however, we expect this activity to increase and spillover
similar route to big pharma and acquiring innovation as
into other clusters as life sciences real estate continues to
opposed to producing it through in-house development.
establish itself as its own asset class.
An example of this is Seattle’s Juno Therapeutics who
recently received a $50.0 million investment from its
Corporate players increasing
partner, Celgene, to develop and commercialize its
stake in venture funding
pipeline internationally. This is not unfamiliar territory for
the New Jersey-based biotech heavyweight, who raised 35%
$8.0 billion in debt financing in 2015 to pay for the
acquisitions of Receptos, Inc. and Quanticel Corporate
Big bio / Big pharma
Pharmaceuticals. The latter came as a result of Celgene Venture capital
Venture 65%
exercising its option to acquire Quanticel as part of a $45
million cancer drug collaboration agreement between the Source: Based on top 20 most active investors,
companies several years earlier. This activity is not limited PitchBook and Silicon Valley Bank, 2015-2016
Summary:
Cluster innovation paving future of industry
As the industry continues to grow, the number of institutional partnerships is also crossing over into
development. Lab construction in the West Raleigh
of jobs and commercial space will need to
submarket is being done in partnership with NC State
grow with it. University. The site is located on its Centennial Campus
as the university’s talent pipeline is a major attraction
Companies have recognized where the talent is clustered for tenants.
and highly value having a nearby presence, which further
refines the depth of these ecosystems. This concentration
of human capital and life sciences companies is where the
function of clusters unquantifiably benefits tenants, and as
the industry continues to grow, the number of jobs and
commercial space will need to grow with it. This is not Largest clusters by space (m.s.f.)
limited to the top tier markets either, as clusters of various
sizes are adding jobs at a noteworthy rate. Following an 30.0
uptick in leasing activity on Long Island, pharmaceutical
and medicine manufacturing employment increased by 25.0
over 30 percent year-over-year. Other clusters are seeing
employment numbers rise as a result of tenant growth. In 20.0
Suburban Maryland, MedImmune, a biotech subsidiary of
AstraZeneca, is anticipating 300 new jobs at its 15.0
manufacturing plant in Frederick County. On the west
coast, Seattle Genetics, the largest biotech company in 10.0
Washington, announced plans to hire an additional 200
employees this year in Seattle’s Bothell submarket. This is 5.0
especially significant when considering it’s on the heels of
the biotech firm adding over 100 employees in 2015 and -
another 150 employees in 2016.
Philadelphia
Suburban Maryland/Metro DC
Raleigh-Durham
San Diego
Greater Boston
Chicago
New Jersey
Seattle-Bellevue
Los Angeles/Orange County

San Francisco Bay Area
Demand for life sciences space remains extremely high as

supply-constrained markets across the U.S. attempt to
meet the requirements of tenants. This has contributed to
a spike in the development of lab space. However, limited
labor supply is also driving up wages in the construction
industry, making it more expensive than ever to develop.
So while we are seeing a rise in speculative developments,
including 1 million square feet expected to break ground in
Source: JLL Research
the first half of 2017 in the Bay Area’s North County alone,
we are also seeing investors take advantage of the
infrastructure that is already in place by repositioning it for
lab use. In fact, the entire Sorrento Mesa submarket in San
Diego was formed as developers saw an opportunity for
greater returns through the conversion of industrial and
flex buildings into web lab facilities. Moreover, the theme
One of the most noteworthy trends surfacing Accordingly, the integration of data analytics into the life
sciences industry reveals how these companies are
in these clusters is the development of urban
beginning to act more like high-tech companies as well
lab space. as the different types of employees they will seek out
going forward. Urban space is also highlighted in the Bay
In a sector that remains defined by its ability to stay Area’s Mission Bay/China Basin submarket, where Kilroy
modern, clusters are continuously changing to meet the Realty is developing The Exchange. With asking rents
needs of the companies that call them home. One of the anticipated to be in the mid $60s NNN, the project will
most noteworthy trends surfacing in these clusters is the deliver 750,000 square feet of premier space to the market
development of urban lab space. An example of this is the by the end of 2017. The region will also benefit from the
Innovation Square (iSQ) project in Boston’s Seaport redevelopment of the Golden State Warriors old practice
District. With cutting edge LEED-designed space, the facility, which is expected to be used almost entirely for life
375,000-square-foot urban development is aiming to sciences purposes.
attract established biotech companies as well as smaller
firms seeking incubator space. The Seaport submarket There are flagship urban developments being built in
also boasts a strong high-tech presence, which offers an clusters across the country. In addition to Boston and the
extension to a different type of talent pool during a time Bay Area, this includes the University City Science Center in
when life sciences organizations are focusing more heavily Philadelphia’s CBD and The Alexandria Center for Life
on data collection and analytics. Companies are looking to Science in Manhattan. These projects as well as others
use data to drive more effective R&D efforts and should aid in providing relief to the low vacancy rates that
commercialization efforts. have the ability to hold back clusters from growth.
The integration of data analytics into the life

sciences industry reveals how these companies
are beginning to act more like high-tech
companies as well as the different types of
employees they will seek out going forward.
Looking forward…
Each cluster has its own story. This ranges from the birth of
biotech in the Bay Area and San Diego, through Genentech
industry standpoint, it will likely continue to be reshaped
by M&A activity as companies look to diversify their
and Hybritech (now Eli Lilly), to a medtech explosion in the business lines and increase market share. This is
Minneapolis-St. Paul region. While these clusters have supplemented by the fact that the new administration has
changed since the mid-20th century, their core value advocated for a more business-friendly approach that
remains the same—a high quantity of life sciences allows domestic companies to pay a lower tax rate when
establishments and talent concentrated in a densely bringing cash back from overseas. These factors will
populated area. continue to impact the life sciences real estate market and
shape these clusters going forward.
This brings us to our final trend, which is global U.S. cities
that are rich in resources making a push to be the next
major life sciences cluster. Most notably, this includes
New York City, a city with an abundant amount of
resources, including renowned academic and medical
centers. However, the cluster has been held back due to a
lack of life sciences infrastructure and the high costs of
operating as well as developing. In response to demand,
the city has launched LifeSci NYC, an initiative that will Looking to 2018, we have identified several
allocate $100 million toward the creation of an applied life rising trends that may impact real estate
sciences campus that is expected to serve as the industry’s decisions and strategy in life sciences
anchor. The organization also pledged $300 million in tax clusters:
incentives for investors who commit to building affordable
commercial lab space. • The divesting and acquiring of business
lines will continue to lead to the disposition
Another city that has made strides in terms of putting itself of space and offer opportunities for small
on the map in the industry is Houston. The country’s fourth and mid-sized firms to grow their footprint
largest metropolis is already home to the largest medical in vacancy deprived clusters.
complex in the world, Texas Medical Center (TMC), and the
city is in the process of fundraising to build a $2 billion, 30- • All signs are pointing toward further
acre commercial campus. It is not a coincidence that one industry growth, which will mean increased
of the industry’s best-known incubator operators, JLABS, demand for space. With lack of availability
opened a 30,000-square-foot facility inside of TMC, and it is already an issue, asking rents for lab space
not a surprise that it is widely considered to be a candidate will continue to rise, particularly in premier
to emerge as a “third coast” for U.S. life sciences. clusters.
However, Houston is not the only Texas cluster on the • As companies key in on retaining and
rise. Well known for having a thriving high tech industry, attracting talent, urban lab space and
Austin has quietly become an attractive location for the life amenitized suburban campuses will be the
sciences. The city contains 200 life sciences companies focus of the next generation of lab
within a 25-mile radius, many of which are startups, with a development.
footprint that is only several years old. The state’s capital
city also brings in $60 million annually in NIH funding and • With institutional capital beginning to pour
saw the recent opening of the new Dell Medical School at into the top markets, the next tier of
the University of Texas, which will contribute many of the clusters, such as Philadelphia and Seattle,
essential elements that have enabled other clusters to get will likely receive more interest from
to where they are today. investors.
Looking at the U.S. life sciences landscape from an
Greater Boston
Greater Boston possesses the largest Home to many of the global leaders in tech
concentration of life sciences researchers in and life sciences, the Kendall Square
the United States and has over 4 million neighborhood in East Cambridge has been
square feet of requirements. touted by some as “the most innovative
square mile on the planet.”
Major lab supply:

495
Clusters of established lab stock
95 North with long-time industry presence
Northwest
Cambridge
Emerging lab supply:

128/Mass Pike Areas with limited lab stock today
495/Mass Pike Seaport District
that are poised for growth
90
Longwood
Medical Area
Life Sciences manufacturing
supply:
Clusters of manufacturing space
devoted to pharmaceutical,
biological or medical device &
instrument manufacturing
Cambridge
As the global hub of R&D for the life sciences industry, Cambridge has become extremely competitive with high quality lab
space hard to come by. The core of Cambridge’s advantages lies in the self-sustaining ecosystem in Kendall Square,
which encompasses major academic institutions, top-notch research facilities, VC firms, startups and global corporations.
Core Suburbs
Life sciences tenants have recognized the added value the suburbs provide. As rents rise and space becomes extremely
limited in Cambridge, tenants have looked to the inner suburbs as a relief valve. No longer just a lower cost alternative,
the suburbs are becoming an attractive option due to landlords strategic investments in the core suburban markets,
luring tenants with amenities and new Class A developments.
CBD
Similar to the suburbs, the tightening Cambridge market has led several big-name tenants to explore potential lab space
downtown, particularly in the Marine Industrial Park. Given its urban location, the Seaport offers a uniquely attractive
option. With a growing lab developments pipeline, the Marine Industrial Park is poised to rise as a life sciences cluster.
Scorecard
Economic
The Greater Boston Area is home to

many elite academic and research
institutions, as well as world-class
Cluster score: 82.3
medical facilities. This includes the top % Life sciences to private Year-over-year
three NIH-funded hospitals in the Workforce Total life sciences employment growth
United States. The region also boasts Employment 86,371 4.5% 1.4%
250,000 students across 52 higher Establishments 2,083 1.7% 5.5%
education institutions, such as
internationally renowned Harvard Funding Total life sciences % To total U.S.
and MIT. VC funding $3.09b 30.1%
NIH funding $2.16b 8.8%
Average asking
Inventory Total supply % Total vacancy rent (NNN)
26.8 m.s.f. 7.3% $42.85 p.s.f.
Boston’s economy is fueled by a large Life sciences employment composition

concentration of healthcare
professionals, with life sciences Pharma & medicine
4% 10% manufacturing
employment accounting for 4.5 non-lab
percent of the regions total Electromedical instrument
using
employment, one of the highest manufacturing
proportions amongst the life sciences Life sciences 24% Medical equipment & supplies
clusters. Over the last decade, the life employment manufacturing
sciences industry has added over 86,371 Testing laboratories
52%
13,000 jobs, putting Boston at the top lab
of tech and science capabilities. using Research & development
8%
2%
Medical & diagnostic
laboratories
The region’s strong life sciences Life sciences establishment composition

community continues to attract
venture capital dollars, bringing in
1/6th of the total U.S. life sciences 8% 3%
13% Pharma & Medicine MFG
funding in 2016. The high activity in
venture capital funding is reflected in Electromedical Instrument MFG
Boston’s significant growth in 9% Medical Equipment & Supplies
Life sciences
establishments. Over the last decade establishments
over 400 establishments were added, 2,083 Testing Laboratories
6%
the majority of them in the R&D field. R&D
61% Medical & Diagnostic Laboratories

Cambridge
East Cambridge
Facilities scorecard
Leasing activity fueled by strong Supply
East West
VC and M&A markets

Cambridge Cambridge
Rentable lab stock 7.7M s.f. 725K s.f.
Owner occupied lab stock 2.6M s.f. 0 s.f.
• The Cambridge lab market has continued to see strong (% of total lab stock) 38.4% 5.2%
activity in the VC and M&A markets, fueling over 1.3
Total vacancy 6.8% 0.3%
million square feet in leasing transactions in 2016. (Change year-over-year) +3.5 ppts -0.3 ppts
• M&A offers top pharma companies the opportunity to
partner on new technologies and refill their drug
# of large blocks over 50,000 s.f. 6 0
pipelines. The access to new and innovative companies
will continue to attract pharma giants to Cambridge. Under construction (s.f.) 589K s.f. 261K s.f.
• One side effect of M&A activity is consolidation of space.
Demand
Following its acquisition of Ariad, Takeda added 221,000
# of requirements 28 5
square feet at 125 Binney Street to the sublease market. Total s.f. requirements 1.13M s.f. 103K s.f.
Elsewhere an uptick in vacancy could spark concern, but
in Cambridge the added space provides momentary Pricing
relief and opportunity, as it is likely to lease quickly. Average asking rent (NNN) $75.05 p.s.f. -
• As the market continues to tighten, tenants currently (Change year-over-year) +10.2% -
occupying lab space in Cambridge are vehemently
holding onto it. Renewals in 2016 almost doubled 2015’s
volume and brought the share of renewals from 14.6
percent to 36.9 percent of yearly transaction volume.
West Cambridge
Recent activity
Speculative developments Jounce Therapeutics
780 Memorial Drive
245 First Street
East Cambridge
underway Mid Cambridge
51,400 s.f.
Rba: 278,000 s.f.
Buyer: Clarion Partners
• West Cambridge continues to develop and establish Seller: Jamestown
itself as a competitive lab cluster and particularly a high $1,044/sf
quality and lower cost alternative to Kendall Square.
• The Davis Companies has two speculative lab
developments underway in West Cambridge. The first, 75-125 Binney Street 399 Binney Street
75 Moulton, is a 37,500-square-foot complete renovation East Cambridge Alexandria Real Estate
that will deliver Q3 2017. The second, 35 Cambridge Park Rba: 384,000 s.f. East Cambridge
Drive, is 223,000 square feet and will deliver mid 2018. Available: 221,000 s.f. Rba: 172,000 s.f.
• King Street Properties also has plans to develop in West Sublessor: Takeda Speculative
Cambridge, with a proposed 120,000 square foot facility Q4 2018
adjacent to their existing 87 Cambridge Park Drive.
• Leasing activity has been consistent and strong in West
Cambridge. Fueled by accelerated growth and recent Activity key: Leasing
acquisition activity, Celgene grew their footprint by Sales
42,000 square feet to a total of 125,000 square feet at 200 Under construction
Cambridge Park Drive in the start of 2017. Large blocks of space
Suburban
Core Suburbs
New developments continue to Supply Core Suburbs
lure tenants to the suburbs Rentable lab stock

Owner occupied lab stock
2.9M s.f.
1.4M s.f.
(% of total lab stock) 15.8%
• The Core Suburban lab market, which contains rentable
space in Bedford, Lexington, Waltham, and Watertown, Total vacancy 12.6%
(Change year-over-year) +0.4 ppts
has seen significant rent growth in recent quarters,
reaching $42.65 per square foot NNN in Q1 2017.
• The inner suburbs have become an attractive option for # of large blocks over 50,000 s.f. 4
lab companies priced out of Cambridge. Multiple
Under construction (s.f.) 235K s.f.
companies have migrated to the suburbs to take
advantage of the competitive pricing, amenity-rich Demand
properties and new development offerings. # of requirements 31
Total s.f. requirements 1.43M s.f.
• Exosome Diagnostics made the move from Cambridge
to 28,086 square feet at 266 Second Avenue in Waltham. Pricing
A spin-out of Cambridge-based Biogen, Bioverativ, also Average asking rent (NNN) $42.65 p.s.f.
made the move to Waltham, leasing up the full building (Change year-over-year) +21.2%
of 112,500 square feet at 225 Second Avenue.
• Furthermore, Wave Life Sciences has now leased the
entire 91,000 square feet at King Street Properties' new
development 115 Hartwell Avenue in Lexington. With the
decision to break ground in 2016, 115 Hartwell Avenue
represented the first ever speculative lab building in the
suburbs. Wave Life Sciences is scheduled to occupy by Recent activity
Q3 2017. Wave Life Sciences 828 Winter Street
• With a growing development pipeline, including King 115 Hartwell Avenue King Street Properties
Street Properties’ 828 Winter Street in Waltham and their Lexington Lexington
200,000 square foot planned addition to Hayden 91,000 s.f. Rba: 145,000 s.f.
Research Campus in Lexington, the suburbs will New development
continue to grow as a cluster and attract tenants
through 2017 and future years.
Bioverativ 65 Hayden Avenue

225 Second Avenue Lexington
Waltham Rba: 210,560 s.f.
112,500 s.f. Buyer: King Street Properties
Seller: Merck & Co.
$793/sf
Activity key: Leasing

Sales
Under construction
Large blocks of space
Boston CBD
Seaport District
Urban lab developments Supply
Seaport
District
Longwood
underway Rentable lab stock 1.4M s.f. 1.1M s.f.

Owner occupied lab stock 0 s.f. 1.7M s.f.
• Already an established tech market, the Seaport is well (% of total lab stock) 5.2% 10.6%
positioned to elevate itself as a lab micro cluster. Total vacancy 4.2% 4.2%
• While office and residential has dominated the Seaport’s (Change year-over-year) +1.0 ppts -3.4 ppts
transformation, lab development potential, coupled
with the unbeatable proximity to amenities and urban # of large blocks over 50,000 s.f. 0 1
offerings, has generated significant interest and buzz
from lab tenants and developers in recent years. Under construction (s.f.) 375K s.f. 0 s.f.
• The Seaport’s evolution into a lab market began in 2014 Demand
when Vertex Pharmaceuticals completed its global HQ, # of requirements 10 0
relocating from East Cambridge into 1.1 million square Total s.f. requirements 261K s.f. 0 s.f.
feet at 50 Northern Avenue and 11 Fan Pier Boulevard.
• Institutional capital in lab property continues to grow, Pricing
and investors are on the look out for the next emerging Average asking rent (NNN) $70.12 p.s.f. $70.12 p.s.f.
life sciences market in Boston. Related Beal has targeted (Change year-over-year) +10.3% +10.3%
the Marine Industrial Park, with the purchase of 27
Drydock Avenue at the end of 2016 for $512 per square
foot. Related Beal also broke ground on phase I of
Innovation Square, or iSQ, in late 2016. Upon
completion it will bring 375,000 square feet of lab space
to the Marine Industrial Park. Recent activity
• As the life sciences industry expands, technology is
becoming an increasingly critical element for companies Decibel Therapeutics Innovation Square
in the field. The proximity to the Seaport’s existing tech 1325 Boylston Street Related Beal
Fenway Seaport District
cluster will provide a significant advantage for tenants.
30,294 s.f. Rba: 375,000
Longwood Medical Area
Best-in-class life sciences

community 360 Longwood Avenue 27 Drydock
Longwood Medical Area Seaport District
• Home to six of Boston’s top 10 NIH funded institutions, Rba: 414,000 s.f. Rba: 286,000 s.f.
the LMA contains over 18 million square feet of clinical, Available: 83,550 s.f. Buyer: Related Beal
research and administrative space within 213 acres. Owner: Alexandria Real Estate Seller: Economic Dev. &
However, with a majority of buildings institutionally Industrial Corporation
owned, there is limited rentable lab space. $512/s.f.
• With tenants like Dana Farber, Boston Children’s
Hospital and Harvard Medical, the LMA is a crucial Activity key: Leasing
component of the success of Greater Boston’s life Sales
sciences community. Under construction
Chicago
Chicago has been ranked on Genetic Chicago has six world-renowned schools of
Engineering and Biotechnology News’ list of medicine, the largest concentration of
Top 10 U.S. Biopharma Clusters for three physicians and two major federal research
years in a row. The biopharmaceutical labs. The Chicagoland area has over 30
industry in Chicago is an immediate market teaching hospitals that drive its competency
for medical device manufacturers. in the biopharmaceutical industry.
Major lab supply:

with long-time industry presence

Areas with limited lab stock today

supply:
Chicago Metro
Dominating Chicago’s life sciences industry are large publicly traded multinationals, such as Baxter International, Abbott
Laboratories and Horizon Pharma, as well as the federal government, which maintains a significant footprint with two
research sites, Argonne National Laboratory in Woodridge and Fermi National Accelerator Laboratory in Batavia. In
addition, Chicago hosts a number of world-renowned academic institutions contributing to scientific research and benefits
from the 23-acre Illinois Science & Tech Park in Skokie that focuses on emerging biosciences. Chicago provides excellent
testing grounds for innovative medical research through its number of hospitals including Rush University Medical Center,
University of Chicago Medical Center and Northwestern Memorial Hospital. The majority of these users own their Chicago
facilities, clustering within suburban campuses, and therefore minimally impacting the local leasing market.
Suburban North Shore

Chicago’s north shore submarkets in Cook County and Lake County are home to R&D-heavy firms. Lake County continues
to drive Chicago’s life sciences cluster with more than 100 biotechnology/pharmaceutical companies, including 10
corporate headquarters. Employees at biopharmaceutical firms earn nearly 50 percent more than the overall average wage
in Lake County.
Scorecard
Economic
Companies in the life sciences

sector are attracted to Chicago’s
high-quality universities and extensive
Cluster score: 40.1
transportation network. Funding from % Life sciences to private Year-over-year
venture capital and the National Workforce Total life sciences employment growth
Institutes of Health has not showed Employment 53,667 1.7% 1.1%
any signs of slowing down. NIH Establishments 1,463 0.7% -1.7%
funding has increased by 3.0 percent
year-over-year. Funding Total life sciences % To total U.S.
VC funding $106.4m 1.0%
NIH funding $736.8m 3.0%
Average asking
8.9M s.f. 4.6% $10.97 p.s.f.
Chicago benefits from a highly skilled Life sciences employment composition

workforce from some of the country’s
top universities. This educated Pharma & medicine
8% manufacturing
workforce has pushed growth in life non-lab
sciences employment, up 1.1 percent Electromedical instrument
30% using
year-over-year. In metro Chicago, 14.4 19% manufacturing
percent of adults aged 25 years or Life sciences Medical equipment & supplies
older have a graduate degree. In Lake employment manufacturing
County, the figure is 18.3 percent. 53,667 Testing laboratories
7%
lab
15% using Research & development
21% Medical & diagnostic

laboratories
Life sciences establishment composition
Chicago is home to multi-national and

local life science occupiers who 5%
provide a diverse pool of 16%
establishments. Chicago’s highway Electromedical Instrument MFG
and rail network provide connectivity Medical Equipment & Supplies
Life sciences
to the rest of the region and country establishments
for medical supply and electromedical 1,463 Testing Laboratories
instrument manufacturers. 20% R&D
26%
Medical & Diagnostic Laboratories
13%
North Shore
Lake County
Growing presence of lab users in Supply North Shore Metro Chicago
Lake County Rentable lab stock

2.0M s.f.
2.5M s.f.
4.3M s.f.
4.6M s.f.
(% of total lab stock) 51.2% 100.0%
• Lake County is known for its educated workforce and
high quality of life. Annual median household income is Total vacancy 4.3% 4.0%
over $82,000 for county residents. (Change year-over-year) -0.75 ppts -0.6 ppts
• Seeking to take advantage of the local workforce, Vyaire
signed a 96,000-square-foot lease in Mettawa. The # of large blocks over 50,000 s.f. 10 16
transaction helped compress the overall suburban
Under construction (s.f.) 0 s.f. 0 s.f.
vacancy rate in late 2016. The class A space will be the
new headquarters for the medical device producer. Demand
• Lake County is home to NeuroLucent, one of the “36 # of requirements 1 0
Best University Startups 2016” according to The National Total s.f. requirements 100,000 s.f. 0 s.f.
Council of Entrepreneurial Tech Transfer. The startup is Pricing
actively pursuing new approaches to treating symptoms Average asking rent (NNN) $10.66 p.s.f. $10.97p.s.f.
of Alzheimer’s disease. (Change year-over-year) +1.1% +3.0%
North Cook County
Cook County vacancy continues

Recent activity
to tighten Vyaire 8030 Lamon Avenue
26125 N Riverwoods North Cook County
• Home to the University of Chicago, Northwestern Boulevard 47,721 s.f.
University, and DePaul University, Cook County offers a North Lake County Class B
diverse and deep labor pool. Nearly 38 percent of those 96,000 s.f.
aged 25 years or older have a bachelor’s degree. Class A
• Aptinyx signed a lease for 16,519 square feet at 909 Davis
Street. The spinoff from Naurex is a biopharmaceutical
company that develops drugs for neurological disorders.
Allergan purchased Naurex in 2016 for over $560 million. Aptinyx MedPoint
North Cook County office vacancy is the lowest out all of 909 Davis Street 909 Davis Street
the suburban submarkets, due in part to the strong North Cook County North Cook County
presence of life science occupiers. 16,519 s.f. 10,851 s.f.
Class A Class A

Sales
Under construction
Denver
With college graduates at 41.3 percent and Access to numerous higher education and
high school graduates at 90.5 percent, research facilities, which boast ample
Colorado has the nation’s second most highly bioscience infrastructure, allows the Denver
educated workforce. A consistent, high flow metro to act as an incubator for various life
of in-migration has boosted the workforce sciences startup companies.
from which companies can recruit.
Longmont
25
Major lab supply:
Boulder Clusters of established lab stock
Lafayette 7
36
470 Brighton
Broomfield Emerging lab supply:
Northwest Areas with limited lab stock today
76
Westminster Northeast
Commerce
Arvada City
270
West CBD Midtown
70 Life Sciences manufacturing
supply:
70 6 Southeast
Lakewood Clusters of manufacturing space
85
Aurora 225 devoted to pharmaceutical,
285 Southeast Suburban
Southwest Suburban
Centennial instrument manufacturing
Boulder / Northwest
The Boulder and Northwest submarket cluster comprises 71.7 percent of Denver Metro’s inventory for lab space and is
considered among the top two life sciences clusters in the entire region. Product in this cluster is comprised primarily of
second generation lab space and flex/office-to-lab conversion space. The majority of tenant requirements in this area are
small, falling in the 5,000 to 15,000-square-foot range.
SE / Southeast Suburban
The Southeast and Southeast Suburban submarkets are home to 10.4 percent of Denver’s lab space. Although these
submarkets are not the most active within the life sciences industry, the area is home to the Fitzsimons Life Science
District and Anschutz Medical Campus—considered to be the epicenter of Colorado’s growing bioscience community.
Here, many startups benefit from shared creative and incubator space while in growth mode.
West Suburbs / Southwest Suburban

The West and Southwest Suburban submarkets encompass 17.9 percent of the market’s lab space. Within these
submarkets, space tends to be both second-generation lab space and flex/office-to-lab conversion product. Tenant
requirements in these submarkets are smaller in size, typically ranging from 2,500 to 10,000 square feet.
Scorecard
Economic
Users and real estate professionals

alike often compare the search for
appropriate lab space in Denver to
Cluster score: 34.2
“finding a needle in a haystack.” % Life sciences to private Year-over-year
Existing, in-place infrastructure in lab Workforce Total life sciences employment growth
buildings are extremely scarce, so life Employment 27,666 2.1% 1.7%
science companies will often use Establishments 1,189 1.1% 8.0%
second generation restaurant space or
clean tech space. Oftentimes, smaller Funding Total life sciences % To total U.S.
users must opt to share lab space. VC funding $58.8m 0.6%
Average asking
4.2M s.f. 11.6% $14.83 p.s.f.
Across the board, nearly all sectors of Life sciences employment composition
the life science industry are growing in
Denver. This is most notable in the Pharma & medicine
pharmaceuticals sector, which has non-lab
experienced employment contraction Electromedical instrument
using
in three of the past five years. The 25% manufacturing
sheer amount of time and capital Life sciences Medical equipment & supplies
required to turn a profit, coupled with employment manufacturing
a challenging regulatory environment, 27,66 Testing laboratories
35%
have been factors in regional lab
companies choosing to consolidate. using Research & development
17%
laboratories
Incubators and startups tend to thrive Life sciences establishment composition

in Colorado, but lack of space and
funding often pushes these companies
out once they become established. 6%
22% 10% Pharma & Medicine MFG
Although growing, access to capital
and reinvestment for life science Electromedical Instrument MFG
companies in Colorado still pales in Medical Equipment & Supplies
Life sciences
comparison to coastal states. establishments 16%
Oftentimes, these more established 1,189 Testing Laboratories
markets siphon not only funding, but R&D
companies and talent as well from
Colorado. 34%
Boulder / Northwest
Boulder / Northwest
Lack of functional supply Supply Boulder Northwest
limiting new deals Rentable lab stock

1.8M s.f.
0.8M s.f.
1.2M s.f.
0.02M s.f.
• Boulder/Northwest submarket cluster encompasses the
cities of Broomfield, Boulder, Lafayette, Louisville, Total vacancy 4.6% 16.9%
(Change year-over-year) -3.3 ppts -0.5 ppts
Westminster and Longmont and is home to the
University of Colorado at Boulder.
• Through 2016, Boulder and Broomfield counties # of large blocks over 50,000 s.f. 0 1
combined to represent the largest share of medical
device and diagnostics (engineering, researching,
designing and manufacturing) employment in the nine- Demand
county region, accounting for one in three jobs for this # of requirements 2 2
Total s.f. requirements 118,000 s.f. 9,800 s.f.
subsector.
• Pharmaceuticals and biotechnology employment is up Pricing
3.2 percent year-over-year, but down 2.5 percent since Average asking rent (NNN) $19.08 p.s.f. $16.98 p.s.f.
2011. (Change year-over-year) +4.2% -11.0%
• AstraZeneca purchased a 692,000 square foot
manufacturing facility from Amgen in order to support
existing operations at its Boulder site and to expand
biologics commercial manufacturing capabilities.
• In 2016, the cluster recorded 176,907 square feet of
positive absorption, but has only experienced 649
square feet of net absorption in the first quarter of 2017. Recent activity
• During the last 12 months, this market has tightened Undisclosed Tenant 4000 Nelson Road
further, with vacancy rates trending sharply downward Undisclosed address AstraZeneca Pharmaceuticals
and settling at 9.6 percent, currently. Available options Boulder Amgen, Inc.
for users seeking lab space are believed to be notably 14,200 s.f. Rba: 692,000 s.f.
tighter than the recorded vacancy rate figure. Class B Class B
• Longmont and Gunbarrel are low cost alternatives with $19.00 NNN $58.80/s.f.
access to the Boulder workforce. Longmont has a supply
of flex and light industrial buildings that have in-place
infrastructure to convert to lab space.
• Looking forward, expect increased absorption, largely RMC Pharma Solutions Elion Labs
reflecting the physical occupancy of users who have 1851 Lefthand Cir. 1401 Infinite Dr.
inked deals in the past quarter. Northwest Northwest
12,808 s.f. 41,033 s.f.
• Leasing-market momentum may be curbed somewhat,
Class C Class B
however, on account of a lack of functional space.
$9.25 NNN $15.50 NNN
• Landlord-favorable conditions remain in the cluster,
with no change expected in the next 18 months.
Sales
Under construction
Anchoring CO’s life science Supply SE
Southeast
Suburban
cluster with Fitzsimons Campus Rentable lab stock

0.2M s.f.
0 s.f.
0.2M s.f.
0 s.f.
• Located at southeastern quadrant of Denver metro, it
boasts the Fitzsimons Life Science District and Anschutz Total vacancy 0.0% 42.5%
(Change year-over-year) -8.6 ppts +21.7 ppts
Medical Center, both with lab-ready space.
• Together, these two areas comprise one of the largest
bioscience developments in the entire U.S. Upon # of large blocks over 50,000 s.f. 0 1
completion, the campus will boast among the nation’s
most preeminent and concentrated collaboration of
patient care and research-learning centers. Demand
• Home to the University of Colorado Hospital, the # of requirements 2 3
University of Colorado Denver’s Health Science Schools,
and Children’s Hospital. Pricing
• Already, more than 16,000 people work within the Average asking rent (NNN) $18.00 p.s.f. $9.75p.s.f.
District; plans estimate a total workforce that will (Change year-over-year) 0.0% +5.4%
measure in excess of 45,000 and include professions in
teaching, patient care and biotech research and
development.
• The SE and Southeast Suburban submarkets combined
for -17,129 square feet of negative net absorption during
2016 and -20,907 square feet of negative net absorption
during the first quarter of 2017, leading to vacancy Recent activity
increasing 7.1 percentage points to 22.0 percent. Undisclosed Tenant 373 Inverness Pky.
• Rental rates in the submarkets are currently at $18.00 1999 N Fitzsimons Pky Zaragon Holdings, Inc.
and $9.75 per square foot NNN—marking upward SE Diamond Ventures
movement in the Southeast Suburban. 16,451 s.f. Rba: 82,801
• Historically, tenants have held the upper-hand in Class B Class B
negotiations here, and increased vacancy will help them $18.00 NNN $132/s.f.
maintain control.
• Typical users include startups occupying shared,
creative and incubator space throughout their growth-
mode phase. 13760 E Arapahoe Rd
• As more VC funding finds its way into the vicinity during Regel Enterprises LLC
the second half of the year, expect an increase in like- Digital Wave Corporation
Rba: 52,226
kind occupiers to seek space as near to Fitzsimons and
Class B
Anschutz as operating budgets will allow.
$87/s.f.
• Looking forward, much of the currently vacant space will
need to be absorbed before any further new
development will commence. Activity key: Leasing
• The District will continue to put Denver on the map of Sales
U.S. top-markets for life sciences in the years ahead. Under construction
West / Southwest Suburban

West Suburbs / Southwest Suburban
Submarket has gained Supply West Suburbs
Southwest
Suburban
momentum with new tenants Rentable lab stock

0.6M s.f.
0.2M s.f.
0.2M s.f.
0 s.f.
• The West and Southwest Suburban submarkets are
largely aligned within the Jefferson County boundaries. Total vacancy 16.3% 4.7%
(Change year-over-year) 0.0 ppts -3.8 ppts
• Long considered a leading area for bioscience with
renowned research institutions and global companies,
JeffCo boasts Colorado’s second-highest concentration # of large blocks over 50,000 s.f. 1 0
of medical device manufacturers at 29.5 percent.
• It is home to the Colorado School of Mines, where
pioneering research is being conducted in the field of Demand
nano medicine and biofuel. # of requirements 2 0
Total s.f. requirements 3,100 s.f. 0 s.f.
• Located in Golden, National Bioenergy Center serves as
the nation’s central point of contact for bioenergy and Pricing
bio-products with its state-of-the-art lab facilities spread Average asking rent (NNN) $11.83 p.s.f. $11.37 p.s.f.
across multiple federal agencies. (Change year-over-year) +18.3% -0.9%
• Space tends to be both second-generation lab space
and flex/office-to-lab conversion space, and as
momentum has picked up over the last year, the West
Suburbs are on the cusp of containing major lab supply.
• The cluster recorded 37,730 square feet of positive net
absorption in 2016, but just -519 square feet of negative
net absorption in the first quarter of 2017. Recent activity
• Vacancy in the cluster is down year-over-year and sits at Undisclosed Tenant
13.2 percent currently. 8100 Southpark Way
• Rental rates are currently $11.83 per square foot NNN in Southwest Suburban
the West Suburbs, reflecting an 18.3 percent increase 12,204 s.f.
from the previous year. Despite strong growth, the Class B
submarket offers one of the lowest rates in the market. $10.00 NNN
• Rental rates are currently $11.37 per square foot NNN in
the Southwest Suburbs, a 0.9 percent decrease from the
previous year.
• Given the historically elevated vacancy rate, the life
sciences market pendulum has rested mostly with
tenants for the past several years, but is likely to swing
toward landlords as more space is absorbed.

Sales
Under construction
Los Angeles / Orange County

The Los Angeles/Orange County life sciences There are more than 25 research institutes,
industry is responsible for more than $27.3 universities and colleges in the region that
billion in annual economic activity and conduct research and train future
employs more than 117,000 people. The generations of scientists and entrepreneurs.
metro is a leader in patent generation but This, coupled with the prevalence of leading
must better partner with the private sector to biotech companies in the market, positions
commercialize research regionally. this cluster as a major industry player.
Major lab supply:



supply:
Los Angeles
Spread among West Los Angeles, South Bay, Los Angeles North, San Gabriel Valley and the Santa Clarita Valley
submarkets, the Los Angeles life sciences clusters are typically centered near leading educational or large biotech firms.
Leading private research institutions, such as Cedar Sinai Medical Center, the City of Hope National Medical Center and
Huntington Medical Research Institute are located in the Los Angeles basin. Two of the five University of California
campuses with medical schools are located in the Los Angeles/Orange County market: UCLA and UC Irvine. In addition,
the region is home to major research universities. These include UC Santa Barbara, Cal Tech and the University of
Southern California (USC).
Orange County
Life sciences companies are located throughout Orange County with the largest clusters located in the Airport Area and
South County. Primary research institutions located in Orange County include Children’s Hospital of Orange County, St.
Joseph Hospital of Orange, University of California Irvine (UCI), St. Jude Medical Center and Hoag Hospital Newport
Beach. Expansion in healthcare firms and available venture capital has spurred significant growth in local biotechnology
and medical device firms.
Scorecard
Economic
The Los Angeles/Orange County region

is home to a diversified life sciences
cluster characterized by large
Cluster score: 47.4
pharmaceutical companies and % Life sciences to private Year-over-year
smaller biotech incubators. The sector Workforce Total life sciences employment growth
is supported by well funded academic Employment 120,830 2.4% 3.3%
and research institutions. The Establishments 3,056 0.6% 0.2%
University of Southern California and
CalTech, have attracted $693 million Funding Total life sciences % To total U.S.
from the National Institutes of Health VC funding $365.4m 3.6%
in 2016. NIH funding $1.06b 4.3%
Average asking
5.9 s.f. 3.4% $10.60 p.s.f.
The region’s life sciences cluster has Life sciences employment composition
been a strong driver of job growth
since the 2007 recession. Factors Pharma & medicine
driving employment are medical- non-lab
based companies entering the Los Electromedical instrument
using
Angeles/Orange County market as well manufacturing
as companies currently based and Life sciences Medical equipment & supplies
20%
expanding operations. employment 31% manufacturing
120,830 Testing laboratories
5% lab
using Research & development

laboratories
Testing laboratories represent a Life sciences establishment composition

strong growth opportunity. The Los
Angeles and Orange County area is
one of the largest metropolitan regions 5%
Pharma & Medicine MFG
in the country. As the area’s 25% 14%
population ages, the demand for Electromedical Instrument MFG
testing services will only increase. Medical Equipment & Supplies
Life sciences
establishments
3,056 Testing Laboratories
21%
R&D
11%
LA / Orange County
Los Angeles
Competition for space likely to
increase as options dwindle Supply Los Angeles Orange County
Rentable lab stock 4.6 M s.f. 1.3 M s.f.

Owner occupied lab stock 1.0 M.s.f. 866,000 s.f.
• Los Angeles lab space reached a cyclical low of 2.7 (% of total lab stock) 17.0% 14.7%
percent, a decrease of 10 basis point year-over-year.
Despite the low vacancy, there are no new projects in Total vacancy 2.7% 6.6%
the pipeline. (Change year-over-year) -0.1 ppts +0.1 ppts
• Owner-occupied assets represent 21.7 percent of the
total market inventory, limiting options for users seeking # of large blocks over 50,000 s.f. 3 1
space.
• Today, there are 13 active Los Angeles metro Under construction (s.f.) 0 s.f. 0 s.f.
requirements totaling nearly 500,000 square feet. The Demand
majority of tenants require 10,000 to 50,000 square feet, # of requirements 13 3
but are also looking for space with future expansion Total s.f. requirements 484,153 s.f. 400,000 s.f.
potential. Pricing
• Low vacancy and scarcity of large blocks of space
Average asking rent (NNN) $10.32 p.s.f. $11.88 p.s.f.
supports demand for new product. Constrained supply (Change year-over-year) 46.0% 0.0%
will exert additional upward pressure on rents.
Orange County
Life sciences growth elevates

Recent activity
local economy Kite Pharma 3535 S Figueroa
2400 Broadway University of Southern
• The Orange County life sciences market covers 2.1 Santa Monica California
million square feet of lab inventory. Over half (52 159,310 s.f. Rba: 150,600 s.f.
percent) of the inventory base is from flex buildings, with Class A Class B
the remaining properties classified as office $66.00 FSG $743/s.f.
or industrial.
• Some of the largest life sciences companies have
operations in Orange County, including Allergan,
Applied Medical Resources Corporation, B. Braun Peregrine 25200 Commercentre
Medical, Beckman Coulter and Edwards Lifesciences. 14191 Myford Road Drive
These firms have a total of 10,100 Orange County Tustin Lake Forest
employees. 42,000 s.f. 83,640 s.f.
• The Orange County economy is becoming more Class B (creative) Class B
diversified and life sciences has been one of the leading $21.60 NNN $8.88 NNN
industries contributing to this diversification. As demand
grows for services provided by firms from this sector, the
local economy and commercial real estate market are
Sales
expected to continue to feel the positive impacts from it.
Under construction
Long Island
The Long Island life sciences landscape will Broad Hollow Bioscience Park, located on
continue to fuel the economy as firms the campus of Farmingdale State College,
emerge from Cold Spring Harbor Laboratory has a 62,000-square-foot-facility available for
in Nassau County, as well as Stony Brook occupancy. The space is ideal for a company
University and Brookhaven National Lab in seeking a corporate research facility.
Suffolk County.
Major lab supply:

25A
Huntington

25
Hauppauge Areas with limited lab stock today
25A
495
111
27
Bayshore
Hempstead supply:
106
27
Freeport
Nassau County
The life sciences industry in Nassau County is well positioned for growth as innovation-focused funding from the state
solidifies groundbreaking bioscience initiatives and research projects. Nassau County serves as headquarters for Cold
Spring Harbor Laboratory, a 125-year-old biomedical nonprofit laboratory, and is home to many lab-based companies
such as Mirimus and Certerra. Great Neck-based Northwell Health, the largest private sector employer on Long Island, is
expanding rapidly along with its research wing, The Feinstein Institute for Medical Research. The Nassau County life
sciences market is mainly comprised of owner-occupied laboratory facilities.
Suffolk County
Stony Brook University serves as an integral part of the research corridor initiative of Long Island. The National Institutes
of Health awarded Stony Brook University’s Center for Biotechnology a three-year, $3 million grant to create the Long
Island Bioscience Hub in collaboration with two key partner institutions. Suffolk County is also home to Brookhaven
National Laboratory, a 4 million-square-foot multipurpose research lab facility funded by the U.S. Department of Energy,
founded in 1947. The majority of life sciences establishments are in owner-occupied facilities in a campus setting . In
recent years, pharmaceutical companies have dominated commercial activity growth with the majority concentrated in
Western and Central Suffolk.
.
Scorecard
Economic
Efforts to accelerate the

commercialization of bioscience
findings have been made throughout
Cluster score: 23.2
the Long Island region as part of the % Life sciences to private Year-over-year
Long Island Bioscience Hub. Through Workforce Total life sciences employment growth
this initiative, Stony Brook University, Employment 28,279 2.6% -2.3%
Brookhaven National Laboratory, Cold Establishments 546 0.5% 4.0%
Spring Laboratory, and Feinstein
Institute for Medical Research adjoin Funding Total life sciences % To total U.S.
their research expertise as partner VC funding $14.1m 0.1%
institutions. As one of three such Hubs NIH funding $144.5m 0.6%
in the country, it serves as a leading
catalyst of life sciences growth on Long Average asking
Island. Inventory Total supply % Total vacancy rent (NNN)
1.4M s.f. 13.2% $23.50 p.s.f.
Pharmaceutical and medicine Life sciences employment composition

manufacturing employment increased
by more than 30 percent year-over- Pharma & medicine
year as a result of numerous large- 13% manufacturing
non-lab Electromedical instrument
sized deals signed since 2016. The using
sector plays an increasingly integral 35% manufacturing
role in economic activity on Long Life sciences Medical equipment & supplies
Island, particularly in the Hauppauge employment manufacturing
region where a majority of pharma 29% 28,279 Testing laboratories
companies are based. Employment lab
composition within these companies using Research & development
jumped to 35 percent of total 17%
6%
employment, from 9 percent in 2016. 0% Medical & diagnostic
laboratories
Life sciences patents for drug, bio- Life sciences establishment composition
affecting and body treating
compositions increased over 20
percent since 2000 in the metro area, 14%
according to the Long Island Index.
The Center for Biotechnology (CFB) at Electromedical Instrument MFG
37%
Stony Brook University functions as a Medical Equipment & Supplies
Life sciences
key facilitator in the development of establishments 19%
new technologies and emerging 546 Testing Laboratories
companies in New York State. The CFB R&D
has contributed to more than a dozen 1%
FDA approved products and has also 13%
helped launch more than 16%
40 companies.
Long Island
Nassau County
Northwell Health fuels Supply Nassau County Suffolk County
bioscience activity Rentable lab stock

0.6M s.f.
0.5M s.f.
0.3M s.f.
0.1M s.f.
• Nassau County saw a series of partnerships and mergers
among research entities as bioscience expanded on Total vacancy 14.7% 9.0%
Long Island. The Feinstein Institute for Medical
Research, Northwell Health’s research and development
arm, recently announced a strategic partnership with # of large blocks over 50,000 s.f. 1 0
United Therapeutics Corporation, a Maryland-based
Under construction (s.f.) 0 s.f. 260,000 s.f.
biotech company. The partnership focuses on the
application of bioelectric medicine and cell therapy. Demand
• Northwell Health withdrew plans to move part of its # of requirements 2 0
Total s.f. requirements 0.2M s.f. 0 s.f.
Feinstein Institute for Medical Research to the Nassau
Hub. The initial plan for the Hub redevelopment project Pricing
proposed an expansion of Northwell’s research wing Average asking rent (NNN) $22.00 p.s.f. $25.00 p.s.f.
operations to land adjacent to the Nassau Coliseum. (Change year-over-year) -13.0% 47.4%
• The 62,000-square-foot facility at Broad Hollow
Bioscience Park in Farmingdale remains the only large
block of Class A lab space in Nassau County.
Suffolk County
Recent activity
Demand from pharmaceutical 75 Modular Ave 155 Commerce Drive
companies persists Alife Pharmaceutical
Commack
Evaric Pharmaceutical
Hauppauge
Rba: 60,000 SF Rba: 105,670 SF
• Evaric Pharmaceutical, a manufacturing company that Class B Class A
aims to produce generic drugs for sale to U.S. $90/s.f. $123/s.f.
government programs, purchased a 107,000-square-foot
facility at 155 Commerce Drive in Hauppauge from
Ropack Inc. The sale is expected to create more than
200 jobs on Long Island. Broad Hollow Bioscience Park InvaGen Pharmaceuticals
• The construction of a 260,000-square-foot Farmingdale 275 Carleton Avenue,
manufacturing facility is still underway at 275 Carleton 62,000 s.f. Central Islip
Avenue in Central Islip. The build-to-suit property is Class A 125,000 s.f.
being constructed for two Hauppauge-based $22.00 NNN Expected delivery: 2017
companies, InvaGen Pharmaceuticals and AlphaMed
Bottles.
• Flushing-based Alife Pharmaceutical purchased a
60,000-square-foot industrial building at 75 Modular Sales
Drive in Commack for $5.4 million—further supporting Under construction
the trend of Queens-based companies seeking to Large blocks of space
relocate to Long Island.
Suburban MD
The Suburban Maryland market has great Maryland and the District of Columbia are
opportunities for continued growth with a the leading states in Academic Bioscience in
federal government backbone and collective the field of Research and Development
mix of universities that will spark innovation. largely due to the presence of the National
Institutes of Health.
Frederick Submarket
Major lab supply:
270

I-270 Corridor Submarket
270
supply:
Suburban Maryland
The Suburban Maryland cluster within Metro DC is distinctive in that it sources the vast majority of its intellectual
resources from the federal government. Government agencies such as the National Institutes of Health (NIH) and the U.S.
Food and Drug Administration (FDA) have provided contracts for private sector companies as well as a high number of
scientists who have spun off to start or staff many of the region’s private life science companies.
The region also benefits from proximity to an abundance of strong educational institutions including the University of
Maryland, George Washington University, Georgetown University, George Mason University and Catholic University. Aside
from its federal and educational backbone, the companies that lead the region’s cluster include Emergent, Wellstat,
Novavax, GSK, MedImmune and Qiagen.
The life sciences are largely clustered in suburban Montgomery County, particularly along the I-270 corridor, known
locally as “DNA alley.” Within the I-270 corridor, a heavy concentration of life sciences companies is found in the Shady
Grove micromarket . Washington, DC and Northern Virginia act as supporting clusters to life sciences activity in Maryland,
mainly not through direct life sciences occupancy, but rather through providing proximate locations that attract talent.
Scorecard
Economic
Suburban Maryland is home to a vast

amount of life sciences tenants who
occupy a significant amount of space
Cluster score: 54.3
in this 11.9 million-square-foot lab % Life sciences to private Year-over-year
market, specifically in the I-270 Workforce Total life sciences employment growth
Corridor market, where 91 percent of Employment 39,644 2.2% 5.5%
supply is located. These tenants Establishments 1,658 1.2% 6.6%
benefit from close proximity to NIH
and the agency’s funding, of which the Funding Total life sciences % To total U.S.
area received more than $535 million VC funding $51.3m 0.5%
last year. NIH funding $535.3m 2.2%
Average asking
11.9M s.f. 3.2% $24.23 p.s.f.
The area’s life sciences employment Life sciences employment composition

base contains a large concentration of
research and development employees, Pharma & medicine
encompassing over 26,000 workers. non-lab
Medical and diagnostic labs make up 7% Electromedical instrument
using
the second largest employment 2% manufacturing
2%
cluster. These large clusters are partly Life sciences Medical equipment & supplies
due to the presence of major industry employment manufacturing
players such as MedImmune, Qiagen, 39,644 Testing laboratories
Emergent, GSK and United lab
Therapeutics. using Research & development

laboratories
Similar to trends in the employment Life sciences establishment composition

composition, research and
development firms comprise over
half of the establishments in the 3% 5%
23% 7% Pharma & Medicine MFG
region. Life sciences companies in
Suburban Maryland have evolved 5% Electromedical Instrument MFG
out of the area’s universities and Medical Equipment & Supplies
Life sciences
federal agencies. establishments
R&D
57%
Suburban MD
I-270 Corridor
Large-scale move-ins, decreased Frederick
vacancy
Supply I-270 Corridor
County
Rentable lab stock 9.0M s.f. 891K s.f.
Owner occupied lab stock 1.8M s.f. 180K s.f.
• Life sciences demand remained at the core of the (% of total lab stock) 90.8% 9.2%
submarket and created occupancy gains in 2016. The
U.S. National Institutes of Health (NIH) renewed and Total vacancy 4.0% 2.1%
expanded for a total of 90,000 square feet at 9 West (Change year-over-year) -2.6 ppts -1.3 ppts
Watkins Mill Road.
• GlaxoSmithKline (GSK) opened its much anticipated # of large blocks over 50,000 s.f. 3 0
global vaccine hub at 14200 Shady Grove in Rockville.
Last year, GSK took 150,000 square feet of sublease Under construction (s.f.) 70,000 s.f. 0 s.f.
space off the market. Demand
• Wellstat Biologics Corporation was also on the move, # of leased deals 59 6
with the company expanding into 115,255 square feet in Net absorption ( s.f. ) 349,358 s.f. 14,652 s.f.
the same building as GSK. Despite the large move, Pricing
Wellstat’s former home, 930 Clopper Road, was left
completely vacant. (Change year-over-year) +18.4% +12.5%
• Alexandria Real Estate (ARE) started renovations at 5
Research Court in early 2017. ARE is marketing the space
to lab tenants.
• National Cancer Institute (NCI) decided on Johns
Hopkins’ Montgomery County Campus as the site for a
new laboratory building.
Recent activity
Frederick County NIH/HMJ 14200 Shady Grove Road
9 W Watkins Mill Road GI Partners
Suburban Maryland’s emerging I-270 Corridor
90,000 s.f.
I-270 Corridor
Rba: 635,058
life sciences market Class B
$29.00 NNN
Class A
$531/s.f.
• Army Medical Research Institute of Infectious Diseases
announced the completion of their new complex. The
865,000-square-foot facility features the latest in bio- 930 Clopper Road NIH
containment technology in order to examine threatening I-270 Corridor Johns Hopkins Montgomery
bacteria and viruses such as the Ebola virus. The army 59,710 s.f. County Campus
plans on fully occupying the building in 2017. Class B I-270 Corridor
• The city of Frederick continued to work with MedImmune $30.00 NNN 70,000 s.f.
on its planned expansion. The life sciences firm will Class A
expand on Solarex Court. MedImmune anticipates
adding 300 jobs with the expansion of its manufacturing
plant. The State Highway Administration completed the Activity key: Leasing
Solarex Court improvements at the end of 2016, and the Sales
MD 180 expansion is scheduled to wrap up Under construction
by spring 2017.
Minneapolis – St. Paul

Minneapolis-St. Paul is the center of the The region hosts one of the world’s most
Medical Alley corridor extending from Duluth successful medical device clusters, a legacy
to Rochester. In 2016, medical device and that dates back to the early 20th century.
digital health companies accounted for 90 Due to significant recent growth, digital
percent of the $420M invested in life sciences health is now coming into its own as a global
in Minnesota. life sciences niche.
94
Northwest
Northeast Major lab supply:

694 Clusters of established lab stock
Minneapolis
CBD 94
St. Paul that are poised for growth
CBD
35W

494 supply:
Southwest
Southeast biological or medical device &
Northeast
Life sciences companies occupy more than 6.2 million square feet of office, lab and manufacturing space in the Northeast
submarket; more than 87 percent of this space is owner-occupied. Prominent global corporations such as 3M, Medtronic
and St. Jude Medical are all headquartered here, as is The University of Minnesota. The University Enterprise Laboratory
was the first multitenant lab building in the Twin Cities. Incubology, a biotech incubator at the former Imation campus,
now offers 80,000 square feet of lab and 200,000 square feet of office.
Northwest
A deep and talented pool of life science workers and a strong cluster of life sciences companies occupy more than 4.2
million square feet of office, lab and manufacturing space. Notable companies with a presence include Baxter, Boston
Scientific, Olympus Surgical Technologies America and Upsher-Smith.
Southwest
Life sciences companies occupy more than 2.3 million square feet of office, lab and manufacturing space in the
Southwest market. Major Southwest occupiers include Starkey Hearing Technologies, Beckman Coulter, Bayer
CropScience and American Medical Systems.
Scorecard
Economic
Minneapolis-St. Paul has a highly

educated workforce; 39 percent of the
population age 25 or older holds a
Cluster score: 39.3
bachelor’s degree or higher. % Life sciences to private Year-over-year
Local life sciences employment grew Workforce Total life sciences employment growth
by 5.2 percent between 2014 and 2015 Employment 45,247 3.0% 5.2%
and currently represents 3 percent of Establishments 716 0.9% -3.8%
total private employment in the Twin
Cities. Job growth has been driven by a Funding Total life sciences % To total U.S.
balanced mix of startups, relocations VC funding $231.5m 2.2%
and large well-established life sciences NIH funding $298.4m 1.2%
companies.
Average asking rent
Inventory Total supply % Total vacancy (Gross)
0.6M s.f. 50.0% $18.00 - $22.00 p.s.f.
Minneapolis-St. Paul has one of the Life sciences employment composition

nation’s deepest and most robust
supply chain environments for medical Pharma & medicine
1%4%
device manufacturers. Minnesota is a 11% manufacturing
leader in cardiovascular technologies, 5% using
as well as complex urological devices. manufacturing
It is among the leaders in developing Life sciences Medical equipment & supplies
complex neurology devices, including employment manufacturing
the emerging neuromodulation device 45,247 49% Testing laboratories
market. 30% lab

laboratories
Minneapolis-St. Paul has the most Life sciences establishment composition

innovative health tech cluster in the
world based on number of patents per
capita. Minnesota is also first 6% 4%
nationally in the development of
complex medical devices, including 22% Electromedical Instrument MFG
22%
premarket approvals (PMAs) for Medical Equipment & Supplies
Life sciences
cardiology, urology and neurology. establishments
716 Testing Laboratories
R&D
11%
35%
Montréal
Montréal is a major pharmaceutical hub in Montréal sees the largest number of
Canada, with more than 400 corporations. It university graduates in Canada per year and
is home to the Canadian headquarters of offers generous tax incentives to life sciences
giants like Pfizer, Sanofi, Valeant firms. This leaves Montréal well positioned to
Pharmaceuticals and Merck. The city foster partnerships between private and
encompasses one-third of all life sciences public organizations. As a result, we expect
companies in Canada. ongoing innovation and long-term growth of
the industry.
Major lab supply:



supply:
West Island / Saint-Laurent

The West Island/Saint-Laurent submarket cluster is home to more than 60 percent of Montréal’s occupied inventory for
lab and manufacturing space. Tenancies in this cluster are divided evenly between three hubs: Technoparc Montréal,
NEXUS 40-13 and the West End. Product in these hubs consists primarily of second generation lab and manufacturing
space and new office developments. With the exception of eight large tenants that occupy more than 50,000 square feet,
the majority of the tenant requirements in this area fall in the 10,000 to 15,000 square foot range.
Laval
Laval’s Biotech City is the second largest cluster for occupied lab and manufacturing space in Montréal. With a radius of
three kilometers, the area is the most dense grouping of life sciences companies in Montréal. Laval is located in a different
administrative region than Montréal, meaning companies here benefit from a different structure of tax incentives and
credits for the operation of their activities.
Downtown and periphery
The downtown and its periphery area are seeing a rejuvenation of life sciences facilities with the construction of three
major hospitals and research and development (R&D) centers. These sites, including the McGill University Health Centre
super hospital, are being created in partnership with local universities and represent over $5.0 billion in investments.
Scorecard
Economic
Montréal is home to a deep pool of

multilingual and highly trained talent, % Life sciences to private Year-over-year
with two world-class universities in the Workforce Total life sciences employment growth
city. Over 27,000 students study in Employment 39,500 1.9% 0.0%
programs relevant to the life sciences Establishments 493 3.4% 0.0%
industry and an average of 6,300
students in these programs graduate Funding Total life sciences % To total Canada
every year. VC funding CA$276.63m 24.8%
Average asking
1.8M s.f. 13.2% CA$13.90 p.s.f.
Life sciences employment composition

In addition, a weak Canadian dollar Pharma & medicine
compared to the U.S. dollar provides a 13% manufacturing
significant cost incentive, intensified non-lab Electromedical instrument
by Montréal’s low operating costs. For using
manufacturing
the life sciences industry, Montréal is 42% Medical equipment & supplies
ranked 1st for the lowest operating Life sciences
employment manufacturing
costs out of North American cities with 39,500 Testing laboratories
populations of 2 million or more, 31%
enjoying an average cost advantage of lab
Research & development
24 percent. using
laboratories
With direct access to a large talent Life sciences establishment composition

pool of skilled workers and notable
cost incentives, Montréal continues to
attract sizable investment, both public
and private. Since 2014, the Québec 26%
government has invested over $2 33% Electromedical Instrument MFG
billion into the provincial life sciences Medical Equipment & Supplies
Life sciences
industry. In turn, firms in life sciences establishments
average a yearly contribution of $5.3 493 Testing Laboratories
billion to the provincial GDP. R&D
15%
26%
Montréal
West Island / Saint-Laurent
Supply ages as firms look for Supply
more modern facilities Rentable lab stock

1.5M s.f.
0.3M s.f.
(% of total lab stock) 100%
• The new ABB HQ at 800 Hymus was completed in Q1
2017. The brand new 169,348 square-foot campus is fully Total vacancy 13.2%
(Change year-over-year) 1.5%
occupied by ABB.
• This has led to several large blocks of space in second-
generation buildings entering the market. Examples # of large blocks over 50,000 s.f. 4
include ABB’s former 42,000-square-foot space at 1800
Under construction (s.f.) 0 s.f.
Saint-François and the 95,562-square-foot block at 2351
Alfred Nobel in the heart of the Technoparc. Demand
# of requirements 9
Laval
Pricing
Laval supply is tightening Average asking net rent (CAD)

(Change year-over-year)
$13.90 p.s.f.
-1.4%
• The sublease space of 17,741 square feet at 420 Armand-

Frappier is the only available block of space over 15,000
square feet.
• Laval is home to the largest concentration of owner-
occupied lab space in Montréal, totaling over 150,000
square feet or 8.9 percent of total lab supply. Recent activity
McGill University Health McGill University Health
Downtown and periphery Center Center
8300 Décarie 2155 Guy
McGill drives activity in 87,000 s.f.

Class A
Downtown West
69,190 s.f.
Downtown and Midtown New Tenant Class B

Renewal
• Over the past year, McGill University Health Center has

been responsible for three of the largest leasing McGill University Health Place Innovation II
transactions as they reorganize around the Glen super Center 2351 Alfred Nobel
hospital. 888 de Maisonneuve East Saint-Laurent
• Over 350 employees will move to the MUHC’s new HQ at Downtown East 95,562 s.f.
8300 Décarie, while the space at 2155 Guy will be 30,889 SF Class A
repurposed as the new home of the Research Institute. Class B $28.00 gross (CAD)
• The healthcare network’s momentum shows few signs New Tenant
of slowing. The MUHC received $70.7 million in federal Activity key: Leasing
investment in March 2017 in order to continue Sales
upgrading facilities. Under construction
New Jersey
Over the course of the past 130 years, the New Jersey’s large amount of peer
pharmaceutical/life sciences industry has companies combined with a highly skilled
developed into one of New Jersey’s leading workforce, world-class universities and top
economic engines. The state is home to the teaching hospitals have helped make the
headquarters or major facilities for 13 of the state a hub for the pharmaceutical/life
largest pharmaceutical/life sciences sciences sector.
companies in the world.
Major lab supply:

287
80 95
Bronx Emerging lab supply:

95
495
Queens
78 Brooklyn
Staten
95 Island
supply:
Northern New Jersey

Northern New Jersey includes Bergen, Essex, Hudson, Morris and Passaic counties. The owner-occupied and leased R&D/
lab inventory totals approximately 3.7 million square feet. Roche’s Clifton/Nutley research campus formerly represented
one of the largest concentrations of lab space in this market. However, Roche ceased operations here in 2013. Prism
Capital Partners recently closed on its purchase of the campus, which will allow the developer to redevelop the 116-acre
site with a mix of commercial, retail and residential components. The new Seton Hall-Hackensack Meridian School of
Medicine signed a 25-year lease to occupy 477,151 square feet in two buildings on the campus, with the first school year
scheduled for fall of 2018.
Central New Jersey

More than three-quarters of the R&D/lab space in the state is focused in Central New Jersey, which includes Hunterdon,
Mercer, Middlesex, Monmouth, Somerset and Union counties. Totaling nearly 12.5 million square feet, more than 70
percent of this space is comprised of owner-occupied R&D/lab facilities used for research, manufacturing and support
operations. Most of the inventory is focused along the Route 1 corridor from North Brunswick south to Princeton, the
Bridgewater area in Somerset County and Kenilworth/Summit in Union County. In late 2016, Bristol-Myers Squibb
announced a phased closure of its Hopewell campus by mid-2020, while investing in the development of new facilities in
Lawrenceville and New Brunswick.
Scorecard
Economic
Though still housing the world’s

highest concentration of scientists per
Cluster score: 47.5
square mile, New Jersey’s life sciences % Life sciences to private Year-over-year
employment trended lower during the Workforce Total life sciences employment growth
past several years in response to Employment 75,863 3.2% -0.8%
consolidations and mergers among Establishments 1,703 1.0% -0.4%
the larger pharmaceutical players. The
state’s life sciences industry employed Funding Total life sciences % To total U.S.
75,860 people statewide, with an VC funding $141.5m 1.4%
annual economic impact estimated NIH funding $229.8m 0.9%
at nearly $50 billion.
Average asking
16.2M s.f. 7.7% $18.39 p.s.f.
The pharmaceutical and medicine Life sciences employment composition

manufacturing sector maintained the Pharma & medicine
largest portion of employment in New 16% manufacturing
Jersey’s life sciences sector. This 25% non-lab Electromedical instrument
cluster’s average annual wage was using
manufacturing
nearly $150,000 compared to $143,190 Medical equipment & supplies
in 2010. Bristol-Myers Squibb, Johnson Life sciences
& Johnson, Merck, Novartis and Pfizer 75,863 Testing laboratories
are among the state’s well-known 9%
30%
employers in the pharmaceutical and lab
Research & development
medicine manufacturing cluster. using
14%
laboratories
M&A activity will continue to reshape Life sciences establishment composition

the local life sciences landscape as
companies look to diversify their
12%
business lines, increase revenue and Pharma & Medicine MFG
25%
gain market share. Such transactions Electromedical Instrument MFG
could be boosted by a potential inflow 11%
of foreign cash and improved stock Life sciences Medical Equipment & Supplies
valuations under the Trump establishments
administration. President Trump has
17% R&D
advocated allowing U.S. companies to
pay a lower tax rate when bringing 25% Medical & Diagnostic Laboratories
back overseas cash. 10%
New Jersey
Northern New Jersey
Allergan signs largest office Supply Northern NJ Central NJ
lease in the state during 2016 Rentable lab stock

1.5M s.f.
2.3M s.f.
3.5M s.f.
9.0M s.f.
• Prism Capital Partners closed on its purchase of the
former Roche Clifton/Nutley research campus, which Total vacancy 9.6% 7.2%
(Change year-over-year) +0.5 ppts -2.0 ppts
will allow the developer to redevelop the 116-acre site
with a mix of commercial, retail and residential
components. The new Seton Hall-Hackensack Meridian # of large blocks over 50,000 s.f. 5 9
School of Medicine signed a 25-year lease to occupy two
buildings totaling 477,151 square feet on the campus.
• Allergan leased a 431,495-square-foot office building at 5 Demand
Giralda Farms in Madison for its new U.S. headquarters. # of requirements 6 4
Total s.f. requirements 0.4M s.f. 0.7M s.f.
The Dublin-based pharmaceutical company was
awarded a 10-year, $58.2 million Grow New Jersey Pricing
award to consolidate its Bridgewater, Jersey City and Average asking rent (NNN) $25.81 p.s.f. $15.85 p.s.f.
Parsippany offices to Madison. (Change year-over-year) -0.7% -6.9%
Central New Jersey
Life sciences companies active Recent activity

on leasing and disposition fronts Allergan Former Roche
5 Giralda Farms Clifton/Nutley campus
• Mallinckrodt Pharmaceuticals leased 233,000 square Northern N.J. / Route 24 Prism Capital Partners
feet at 1405 and 1425 Route 206–Somerset Financial 431,495 s.f. Northern N.J. / Route 80/23
Center in Bedminster. Class A office lease 116-acre site
• Consolidations by Valeant Pharmaceuticals led to
310,000 square feet being placed on the market for
sublease at Somerset Corporate Center III in
Bridgewater. This availability represented the largest
block of sublease space in the Route 78 Class A market. Mallinckrodt Avantor Performance
• Russo Development is under contract to purchase Merck Pharmaceuticals Materials
& Co’s former 1 million square foot research campus at Somerset Financial Center NJ Center of Excellence
1011 Morris Avenue in Union. Transit-oriented luxury Central N.J. / Route 78 Central N.J. / Route 78
rentals, restaurants and retail components are expected 233,000 s.f. 26,769 s.f.
to be included in the redevelopment plans for the Class A office lease R&D/lab lease
property.
• While Bristol-Myers Squibb announced a phased closure Activity key: Leasing
of its Hopewell site by mid-2020, the drug maker plans Sales
on investing in the development of new facilities in Under construction
Lawrenceville and New Brunswick. Large blocks of space
New York
New York City is emerging as a leading Investors have committed billions of
destination for biotech startups and the dollars throughout the city and metro area to
larger life sciences industry. fuel growth in the life sciences and attract
top talent.
Major lab supply:

287
80 95
Bronx
95
495 Areas with limited lab stock today
Queens that are poised for growth
Brooklyn
78
Staten
95 Island Life Sciences manufacturing
supply:
New York
New York City is an emerging destination for life sciences tenants, as the local economy continues to diversify and
embrace new industries. According to the local Economic Development Corporation, the city is home to one of the
nation’s largest concentrations of medical centers, research foundations and academic institutions. The life sciences
scene in New York City is also bolstered by its close proximity to other biotech enclaves in the greater metro area—namely
New Jersey, Long Island and Westchester County.
Scorecard
Economic
New York City’s life sciences cluster

continues to grow thanks to support
from the NYC Economic Development
Cluster score: 33.7
Corporation (NYCEDC) and the local % Life sciences to private Year-over-year
government. The city has launched a Workforce Total life sciences employment growth
number of initiatives to fuel the life Employment 14,275 0.4% 2.8%
sciences industry. Establishments 1,087 0.4% 4.2%
Funding Total life sciences % To total U.S.

NIH funding $1.63b 6.6%
Average asking
2.8M s.f. 22.1% $31.77 p.s.f.
New York City’s direct access to capital Life sciences employment composition
as a leader in global finance and its
rich talent pool contribute to its status Pharma & medicine
1% 4%
as an ideal tenant destination. A manufacturing
10% non-lab Electromedical instrument
diverse economic landscape and using
proximity to the booming tech sector 36% 3% manufacturing
have also created unique Life sciences Medical equipment & supplies
opportunities for innovation among employment manufacturing
life sciences tenants. 14,275 Testing laboratories
lab
46%
laboratories
Industry giants like Roche, Pfizer, and Life sciences establishment composition
Eli Lilly have established footprints in
the city, and the BLS estimates that
more than 1,000 other life sciences 2% 3%
companies are located throughout the
New York area. 23% Electromedical Instrument MFG
40%
Life sciences Medical Equipment & Supplies
establishments
4% R&D
28%
New York
Manhattan
100 percent of lab space is Supply Manhattan Brooklyn
occupied Rentable lab stock

1.3M s.f.
15,660 s.f.
1.5M s.f.
0 s.f.
• While overall vacancy in Manhattan’s office sector
hovers near 10 percent, its 1.3 million square feet of lab Total vacancy 0.0% 42.2%
stock is fully occupied. Demand from the city’s budding
life sciences industry has outpaced lab supply in
Manhattan. # of large blocks over 50,000 s.f. 0 2
• In response, the city has launched LifeSci NYC, an
Under construction (s.f.) 2.1M s.f. 0 s.f.
initiative that will allocate $100 million towards the
creation of an applied life sciences campus that will Pricing
ultimately serve as the industry’s anchor. The new Average asking rent (NNN) - $31.77 p.s.f.
(Change year-over-year) - +23.2%
campus will be in addition to the one already under
construction on Roosevelt Island by Cornell Tech.
• LifeSci NYC has also pledged $300 million in tax
incentives for investors who commit to building
affordable commercial lab space.
• In the meantime, life sciences tenants are adapting
office space for their purposes or turning to coworking
providers. Intercept Pharmaceuticals recently
committed to 49,143 square feet of interim space at 10
Hudson Yards. It will move to 82,275 square feet at 55
Hudson Yards once construction is complete. Recent activity
Intercept Pharmaceuticals BioBAT
Hudson Yards Brooklyn Army Terminal
Brooklyn 10 Hudson Yards Building A
49,143 s.f. 140 58th Street
More than 600,000 square feet

55 Hudson Yards 398,000 s.f.
82,275 s.f.
available for lease

• In contrast to Manhattan, lab vacancy in Brooklyn is JLABS @ NYC Cornell Tech
currently at 42.2 percent, down 23.2 percentage points (Johnson & Johnson Tech & Applied Sciences
over the year. Innovation) Campus
• A large block totaling 398,000 square feet is available at New York Genome Center Roosevelt Island
BioBAT, a state-of-the-art biotech facility in the Brooklyn 101 Avenue of the Americas 2.1M s.f.
Army Terminal. 30,000 s.f. Phase 1 delivery: 2017
• 209,800 square feet of space is available for lease at 630
Flushing Avenue, the former Pfizer Building. Activity key: Leasing
Sales
Under construction
Philadelphia
Between 2010 and 2015, Philadelphia grew its Philadelphia’s market fundamentals are
Bachelor’s degree-holding population by 30 strong as a result of a diverse ecosystem of
percent, more than any of the 10 largest U.S. established pharma firms and new startups,
cities. Over the past decade, Philadelphia has supported and incubated by growing
added more than 135,000 millennials. These research institutions. Growing local access to
trends create an attractive talent pipeline for sources of venture capital remains a priority.
life sciences firms seeking a talented
workforce.
Major lab supply:

1 Clusters of established lab stock
Trenton with long-time industry presence
276
King of Prussia
476
Philadelphia
76
1 University City Life Sciences manufacturing
supply:
322
Navy Yard Clusters of manufacturing space
95
130 devoted to pharmaceutical,
45
Wilmington instrument manufacturing
Philadelphia
The Philadelphia market acts as a global anchor for the life sciences industry, boasting more than 11 million square feet of
life sciences real estate. Philadelphia’s world-renowned academic institutions, centers of excellence for medicine, clusters
of venture capital firms, and a diversity of startups and mature corporations make for a resilient life sciences cluster.
CBD (University City & The Navy Yard)

17 percent of the lab inventory exists within city limits, split between The Navy Yard, a life sciences and pharmaceuticals
hub and University City, where institutional groups are partnering to translate research into private sector ventures.
Suburbs (Route 202 Corridor & Bucks/Montgomery County)

The Route 202 Corridor (extending from Exton, heading east through Malvern and finally ending in King of Prussia) is
home to 37 percent of the Philadelphia market’s lab space. Bucks / Montgomery County is the region’s largest submarket
on a square-footage basis, largely because Merck & Company occupies 3.6 million square feet, or 71 percent of the
total supply.
Scorecard
Economic
Cluster score: 54.7

% Life sciences to private Year-over-year
Workforce Total life sciences employment growth
The Greater Philadelphia region is Employment 53,594 2.3% -0.4%
home to many elite academic and Establishments 1,659 0.9% 1.5%
research institutions, as well as
numerous hospitals and a strong Funding Total life sciences % To total U.S.
pharmaceutical industry. Nearly VC funding $389.3m 3.8%
400,000 students attend one of the NIH funding $913.5m 3.7%
region’s 90 plus colleges or
universities. The region is a top winner Average asking
in federal research funding, attracting Inventory Total supply % Total vacancy rent (NNN)
$900 million in NIH awards in 2016. As 11.9M s.f. 3.9% $30.00 p.s.f.
of 2015, 567,000 people in the
Philadelphia metropolitan area Life sciences employment composition
worked in the “eds and meds” sectors.
Pharma & medicine
10% manufacturing
Eds and meds institutions are non-lab
proactive partners in the life sciences 25% Electromedical instrument
using
economy. Drexel University is manufacturing
proposing 1 million square feet of Life sciences Medical equipment & supplies
rentable lab space at its Schuylkill employment manufacturing
Yards innovation district, a partnership 35% 53,594 Testing laboratories
with Brandywine Realty Trust. 14% lab
Children’s Hospital of Philadelphia using Research & development
(CHOP) and others leverage the 9%
Science Center to nurture and 7% Medical & diagnostic
monetize research begun in-house. laboratories
Spark Therapeutics, a CHOP success
story, is keeping its headquarters in
University City and is exploring sites for Life sciences establishment composition
its lab and manufacturing space.
7%
More life sciences and technical Pharma & Medicine MFG
24% 13%
companies are calling Philadelphia
Electromedical Instrument MFG
home. The region’s industry leaders
are investing heavily in supporting Life sciences Medical Equipment & Supplies
entrepreneurs through initiatives like establishments
1,659 14% Testing Laboratories
Pennovation Works, DreamIt Health
Ventures and a new Health Care R&D
Innovation Collaborative. Medical & Diagnostic Laboratories
9%
33%
Philadelphia
CBD (University City & The Navy Yard)
98.1 percent of lab space is Supply CBD Suburbs
occupied Rentable lab stock

2.0M s.f.
0 s.f.
9.9M s.f.
5.3M s.f.
• Currently available lab inventory is almost fully occupied,
given that many established Philadelphia companies opt Total vacancy 1.9% 4.3%
to pursue long-term leases or build-to-suit opportunities
in single occupant buildings.
• Speculative lab construction is rare in this market. The # of large blocks over 50,000 s.f. 1 3
uCity Square project, a multi-year, mixed-use
Under construction (s.f.) 806,000 s.f. 80,000 s.f.
development led by Wexford Science & Technology in
University City, is the one speculative project designed to Demand
accommodate lab tenants. This is true at 3675 Market, # of requirements 1 4
the area’s only active construction project. The building
is currently 50 percent leased to Cambridge Innovation Pricing
Center and the Science Center. Average asking rent (NNN) $38.00 p.s.f. $14.51 p.s.f.
• Several major occupancy events are occurring in 2017. (Change year-over-year) +35.7% +17.5%
For example, AdaptImmune debuted its U.S.
headquarters research facility at The Navy Yard in Q1 and
CHOP will deliver its 700 Schuylkill Avenue research
tower this spring.
Suburbs (Route 202 Corridor / Bucks &

Montgomery counties) Recent activity
Trevena 335-395 Phoenixville Pk
Pharma expansions drive 955 Chesterbrook

Route 202 Corridor
Warren Ave Investors
Route 202 Corridor
suburban demand 40,000 s.f.

Class A
104,400 s.f.
Class B
$26.00 Plus E $105/s.f.
• Demand from growing pharmaceutical firms will
continue to drive demand throughout 2017. One of these
firms is Trevena. The company recently relocated and
expanded its footprint from 17,000 square feet to a new 508 Lapp Rd 3675 Market St
40,000 square foot space along the Route 202 Corridor. Route 202 Corridor University City
• The Pennsylvania Biotechnology Center of Bucks County 50,200 s.f. Class A
recently broke ground to add 47,000 square feet of lab Class B 345,000 s.f.
and incubator space to its existing facility. The long- $10.00 NNN Ventas / Wexford
awaited expansion will allow existing tenants to grow $40.00-$42.00 NNN
and bring 100 new jobs to the submarket.
• The Almac Group plans to double the size of its current Activity key: Leasing
U.S. headquarters in Montgomery County through a $24.4 Sales
million expansion. The pharmaceutical company owns Under construction
its facilities and will add over 300 new jobs this year. Large blocks of space
Raleigh-Durham
North Carolina’s life sciences cluster is made Raleigh-Durham’s life sciences cluster is
up of more than 927 life sciences anchored by three Tier 1 research
establishments. Nearly 70 percent of those universities: North Carolina State University,
companies call Raleigh-Durham, known as Duke University and the University of North
the Research Triangle Region, home. Carolina-Chapel Hill.
Orange County Major lab supply:

North
Durham
85 6 Forks
Falls of
Neuse
Downtown Route 1 Emerging lab supply:
Durham
South Areas with limited lab stock today
Durham Glenwood /
Creedmoor that are poised for growth
40
RPT/RDU
West Downtown Life Sciences manufacturing

Cary
Raleigh Raleigh supply:
440
East Raleigh devoted to pharmaceutical,
Downtown Durham
This submarket’s proximity to Duke University, startups and one of the top healthcare organizations in the country, lends
to its high demand among life sciences tenants. As the renovation of The Chesterfield nears completion at 94 percent
leased, the Durham Innovation District (Durham ID) has broken ground on 300,000 square feet of its planned 1 million
square feet of office and laboratory space.
RTP/RDU
RTP/RDU, named for the Research Triangle Park, is the originator of the life sciences industry for Raleigh-Durham. Home
to more than 75 percent of Raleigh-Durham’s lab space, RTP/RDU is the location for industry giants such as Biogen,
GlaxoSmithKline, United Therapeutics, BASF Corporation, Bayer Crop Science and FUJIFILM Diosynth.
West Raleigh
North Carolina State University and its Centennial Campus lead the development of lab space in West Raleigh. The
campus has become a core research-oriented micro-region. In addition to easy access to talent, the University facilitates
corporate partnered research.
Scorecard
Economic
Raleigh-Durham is home to top

healthcare organizations including
Duke University Health System and
Cluster score: 65.4
UNC Rex Healthcare. Additionally, the % Life sciences to private Year-over-year
region boasts 12 colleges and Workforce Total life sciences employment growth
universities, where 105,000 students Employment 35,080 5.4% 6.6%
are enrolled. Each year, 27,000 Establishments 927 2.1% 6.1%
students graduate, lending to the
area’s high concentration of talent. Funding Total life sciences % To total U.S.
Average asking
11.1 M s.f. 21.3% $16.53 p.s.f
Since 2001, North Carolina’s life Life sciences employment composition

sciences cluster has added nearly
20,000 new jobs. Currently, there are Pharma & medicine
7% manufacturing
more than 70,000 life sciences jobs in non-lab
24% Electromedical instrument
North Carolina; Raleigh-Durham using
accounts for 50.1 percent of that with manufacturing
35,080 jobs ranging from research and Life sciences Medical equipment & supplies
development to drug and employment manufacturing
38% 35,080
pharmaceutical manufacturing. Testing laboratories
20% lab
5% 6% Medical & diagnostic

laboratories
As the name suggests, many of the Life sciences establishment composition

Research Triangle’s life sciences
companies fall into research and
development. Raleigh-Durham’s 4%
industry base, as well as North 22%
7%
Carolina’s as a whole, specializes in Electromedical Instrument MFG
agricultural biosciences, drugs and Medical Equipment & Supplies
Life sciences 10%
pharmaceuticals, and research, establishments
testing, and medical labs. 927 Testing Laboratories
R&D
50%
RTP / RDU
RTP / RDU
Argos Therapeutics puts Supply RTP /RDU
headquarters on the market Rentable lab stock

7.5 M s.f.
1.1 M s.f.
• Following the recommendation to discontinue the
Phase 3 trial of its kidney cancer treatment, Argos Total vacancy 24.0%
(Change year-over-year) +13.7 ppts
Therapeutics will reduce its workforce by 38 percent.
The company’s 97,875 square foot build-to-suit
headquarters and manufacturing facility will be # of large blocks over 50,000 s.f. 37
available for lease. Built in 2016, the build-to-suit has
$4 million of lab infrastructure that new tenants could
benefit from in Raleigh-Durham’s highest concentration Demand
of lab space. # of requirements 8
Total s.f. requirements 725,000 s.f.
• Research Triangle Park continues to see high levels of
sales activity as investors take note of recent growth. Pricing
The average sales price of $109.78 per square foot. Average asking rent (NNN) $14.94 p.s.f.
Recent transactions include the Steifel Building, (Change year-over-year) -6.6%
Commercial Park West and a five building portfolio sale
in Perimeter Park.
• GlaxoSmithKline’s campus, totaling 1.2 million square
feet, is under contract by a life sciences landlord
investor based out of California. Upon closing, up to
700,000 square feet will be renovated and made
available for life sciences tenants. The investor has a 10- Recent activity
year plan to transform GlaxoSmithKline’s campus into BioAgilytix Perimeter Park
an innovation hub, offering cutting edge amenitized Headquarters 5 property portfolio
space in a highly desirable location. 2300 Englert Drive Singerman Real Estate
• Monsanto vacated its greenhouse and lab space in RTP / Durham Rba: 412,108
RDU, bringing 122,000 square feet to the market in 2016. 21,000 s.f. Class B
The company relocated its Research Triangle Park Class B $120.12/s.f.
operations to St. Louis as part of its strategy to increase
collaboration and communication.
• Metabolon, a Triangle-based biotechnology company,
has expanded, adding 13,000 square feet of space to Stiefel Building Argos Therapeutics
their Keystone Technology Park location. The company, 20 TW Alexander Dr. Headquarters
which specializes in metabolomics, now leases 55,000 Longfellow Real Estate Partners 1733 TW Alexander Drive
Rba: 143,000 RTP / RDU
square feet total.
Class B 97,875 s.f.
• BioAgilytix is expanding its existing 29,000-square-foot
$101.75/s.f. Class A
advanced laboratory and headquarters at 2300 Englert
Drive to 50,000 square feet. In 2016, the company hired
approximately 40 people and acquired IPM Biotech, Activity key: Leasing
based in Germany. The expansion will include a Sales
customer buildout of new laboratory space. Under construction
Downtown Durham &

West Raleigh
Downtown Durham
100 percent of existing lab space Supply
Downtown
Durham
West Raleigh
is occupied Rentable lab stock

434,185 s.f.
114,600 s.f.
401,627 s.f.
0 s.f.
• For the sixth quarter in a row, Downtown Durham’s lab
space vacancy rate sits at 0.0 percent. Total vacancy 0.0% 10.7%
(Change year-over-year) 0.0 ppts +10.7 ppts
• Longfellow Real Estate Partners, known for their lab
development, has broken ground on two lab/office
buildings in the master planned Durham Innovation # of large blocks over 50,000 s.f. 4 0
District (Durham ID). Together, the buildings total
Under construction (s.f.) 584,000 s.f. 44,500 s.f.
300,000 square feet. Duke Clinical Research Institute has
fully leased one building; the other will offer 150,000 Demand
square feet of available space. The development has # of requirements 4 3
115,000 square feet of existing lab, and intends to add 1
million additional square feet of lab/office space. Pricing
• Nearing completion is The Chesterfield, a 286,000 square Average asking rent (NNN) $25.75 p.s.f. $29.50 p.s.f.
foot office, lab and retail redevelopment project. (Change year-over-year) -6.4% 0.0%
Nutanix has signed a lease committing to 70,000 square
feet, bringing the structure to 94 percent leased,
exceeding the market average of 42.3 percent.
West Raleigh
Recent activity
Centennial Campus spurs West Biomedical Partnership Nutanix
Raleigh lab development Center
1001 William Moore Dr.
The Chesterfield
701 W Main Street
44,500 s.f. Downtown Durham
• Argos Therapeutics, which had announced it would be Class A 70,000 s.f.
taking 40,000 square feet of office and lab space in the $31.50 NNN Under Renovation
newly completed Center for Technology and Innovation,
is downsizing following the recommendation to
discontinue a Phase 3 trial. The 40,000 square foot
block will come back on the market, making it the The Center for Technology & Durham ID
largest space available on NC State University’s Innovation 300 Morris Street
Centennial Campus. Centennial Campus 150,000 s.f.
• Recent lab space development in West Raleigh has 40,000 s.f. Class A
been done in partnership with NC State University. Class A $29.00 NNN
Both the Center for Technology and Innovation and the $27.50 NNN
under construction Biomedical Partnership Center are
on the university’s Centennial Campus. Access to NC Activity key: Leasing
State’s talent pipeline is a major attraction for life Sales
science tenants. Under construction
San Diego
San Diego is one of the leading life sciences Torrey Pines acts as the heart of the San
markets in the nation. The San Diego market Diego life sciences cluster and is home to
continues to see demand for life sciences such prominent institutions as Sanford
facilities, with more than 2.4 million square Burnham Prebys Medical Discovery Institute,
feet added since the beginning of 2016 and The Scripps Research Institute, Salk Institute,
500,000 square feet under construction. Sanford Consortium and the J. Craig Venter
Institute, among others.
Major lab supply:

North County Clusters of established lab stock

Sorrento Valley
Sorrento Mesa
Torrey Pines
supply:
UTC
Torrey Pines
Torrey Pines is home to San Diego’s largest concentration of lab space. The submarket is adjacent to UC San Diego and the
Pacific Ocean. Torrey Pines acts as the epicenter of San Diego’s life sciences market and is home to acclaimed research
institutes, large pharmaceutical companies and successful biotechs ranging from startups to mature companies.
UTC
UTC is located on the east side of UC San Diego and is comprised of mature, publicly traded companies with advanced
product development. The submarket is located in an area that offers numerous amenities to tenants via a large upscale
shopping mall and other sizable shopping centers. UTC is also home to one of San Diego’s largest Class A office markets.
Sorrento Mesa
Sorrento Mesa caters to all tiers of life sciences companies and sometimes acts as a value alternative to Torrey Pines or UTC.
Sorrento Mesa was formed as developers saw opportunities for greater returns through the conversion of industrial and flex
buildings into wet lab facilities. The submarket is also a regional hub for hi-tech companies.
Sorrento Valley
Sorrento Valley developed as an ancillary market to Torrey Pines and today continues to be home to many of San Diego’s life
sciences companies. With a base of older industrial and flex buildings that have been converted to lab space, this submarket
has historically provided a more economical alternative for early and mid-stage companies.
North County
North County is situated about 30 minutes north of San Diego’s primary life sciences cluster. The North County life sciences
submarket is anchored by a handful of large companies, and a significant amount of the composition includes
manufacturing. North County has carved out a healthy niche apart from the primary San Diego life sciences cluster.
Scorecard
Economic
San Diego, with its rich pool of R&D

talent and new company formations,
is known for continually producing
Cluster score: 65.8
companies with advanced % Life sciences to private Year-over-year
technologies that position them for Workforce Total life sciences employment growth
acquisition. Global biotech and Employment 64,676 5.6% -2.1%
pharma companies continue to Establishments 1,413 1.5% 3.6%
depend on early stage biotechs to
drive innovation, and San Diego has Funding Total life sciences % To total U.S.
proven it can do just that. The region VC funding $721.5m 7.0%
has secured over $56 billion in M&A NIH funding $852.1m 3.5%
activity since 2011. While there have
not been any major deals since Average asking
Celgene’s acquisition of Receptos in Inventory Total supply % Total vacancy rent (NNN)
the third quarter of 2015 for $7.2 17.0M s.f. 7.3% $40.80 p.s.f.
billion, San Diego is well positioned
to attract renewed attention from the Life sciences employment composition
major players in the national and
Pharma & medicine
global markets. 8% 10% manufacturing
using
manufacturing
18%
Life sciences Medical equipment & supplies
64,676 Testing laboratories
51% 10% lab

There is just over 1 million square 3%
feet of active tenant demand in the Medical & diagnostic
life sciences market. This demand is laboratories
expected to produce around 500,000
square feet of positive net absorption
in occupancy growth. The market is Life sciences establishment composition
seeing a number of new startups
move out of local incubators and into
new facilities. There has been an 12% 6%
increased number of companies 11%
from outside of San Diego looking to Electromedical Instrument MFG
move into the region, of which there Medical Equipment & Supplies
Life sciences 11%
are currently seven. establishments
7% R&D

Torrey Pines & UTC

Torrey Pines
Big names continue to flock to Supply Torrey Pines UTC
Torrey Pines Rentable lab stock

5.9M s.f.
1.9M s.f.
3.5M s.f.
0.2M s.f.
• Torrey Pines saw some highly prominent companies
sign leases over the past year. Some of the companies Total vacancy 5.0% 15.7%
included Calibr, SBPMDI, COI Pharmaceuticals and
Astellas Pharma, a large Japanese pharmaceutical
company that will be opening up a new location in # of large blocks over 50,000 s.f. 1 5
Torrey Pines.
Under construction (s.f.) 0.2M s.f. 0.3M s.f.
• The vacancy rate in Torrey Pines edged up over the past
year, a minor 80 basis points mostly due to a few new Demand
subleases. # of requirements 7 5
Total s.f. requirements 0.3M s.f. 0.2M s.f.
• Torrey Pines continues to have limited availabilities for
companies to choose from. Likewise, rental rates have Pricing
remained steady, with deals continuing to be signed Average asking rent (NNN) $50.40 p.s.f. $48.00 p.s.f.
with starting rental rates in the low $48 per square foot (Change year-over-year) +6.3% +3.9%
NNN range.
UTC
UTC is the fastest growing life Recent activity

sciences submarket in San Diego Illumina
4775-4795 Executive Dr.
10578-10628 Science
Center Dr.
UTC Alexandria RE Equities
• During the past two years, the UTC submarket has seen 316,000 s.f. Torrey Pines
more growth to its inventory base than all of the other Class A Rba: 292,000
San Diego life sciences submarkets combined. Since the Class A
second quarter of 2015, the submarket has seen 1.1 $538/s.f.
million square feet of new inventory brought online. The
new inventory included a few build-to-suit sites, but the
vast majority of that new inventory consisted of former Calibr 10300 Campus Point Dr
office buildings that were purchased and converted to 11119 N. Torrey Pines Rd. TIAA-CREF (45% interest)
life sciences facilities. Torrey Pines UTC
• Illumina’s continued expansion dominated the leasing 73,000 s.f. Rba: 449,741
activity over the past year. The company signed a new Class Class A
lease on 316,000 square feet earlier in 2016 and $46.20 NNN $680/s.f.
completed construction on a new 295,000 square foot
facility during the last quarter of 2016. Activity key: Leasing
Sales
Under construction
Sorrento Mesa
& Sorrento Valley
Sorrento Mesa
Sorrento Mesa occupancy Supply Sorrento Mesa Sorrento Valley
continues upward movement Rentable lab stock

4.0M s.f.
1.0M s.f.
1.1M s.f.
0.1M s.f.
• Sorrento Mesa supplanted Torrey Pines as the highest Total vacancy 4.0% 10.5%
occupancy submarket in San Diego’s primary life (Change year-over-year) -3.6 ppts +6.5 ppts
sciences micro clusters with a 360 basis point decrease
in vacancy. # of large blocks over 50,000 s.f. 4 1
• HCP acquired a high vacancy project on Directors Place
and quickly leased over half of the available space to Under construction (s.f.) 0 s.f. 0 s.f.
Sorrento Therapeutics. Demand
• There are another 315,000 square feet of deals currently # of requirements 7 6
under negotiation in Sorrento Mesa, which will continue Total s.f. requirements 0.4M s.f. 0.2M s.f.
to strengthen fundamentals in the submarket.
Pricing
(Change year-over-year) 0.0% 0.0%
Sorrento Valley
Sorrento Valley true to incubator Recent activity

identity with small deal volume Sorrento Therapeutics 4939-4955 Directors Pl
4939 Directors Pl. HCP
• Sorrento Valley was the only San Diego life sciences Sorrento Mesa Sorrento Mesa
submarket to see a significant increase in vacancy over 77,000 s.f. Rba: 138,090
the past year. After having posted five consecutive Class Class
quarters of positive net absorption, the second half of $36.00 NNN $355/s.f.
2016 saw a number of large tenants moved out that
drove up overall vacancy.
• Eighty-five percent of the leases completed in Sorrento
Invivoscribe Technologies 11535-11772 Sorrento
Valley over the past year were leases under 10,000
6262 Lusk Blvd. Valley Rd
square feet, which exemplifies the incubator nature of Sorrento Mesa Parallel Capital Partners
the submarket. 52,000 s.f. Sorrento Valley
• There are currently multiple deals in the proposal or Class B Rba: 285,188
lease negotiation stages, and we expect the vacancy $30.60 NNN Class C
rate in Sorrento Valley to quickly return to single digits $149/s.f.
by the second half of 2017, as some of the larger blocks (Life sciences/office/R&D
get re-leased. Activity key: Leasing mix)
Sales
Under construction
North County
North County
Vacancy extremely tight in San Supply North County
Diego’s North County Rentable lab stock

2.4M s.f.
0.8M s.f.
• North County’s vacancy rate sits at a miniscule 1.1
percent, which marks the lowest levels seen in well over Total vacancy 1.1%
(Change year-over-year) -3.3 ppts
a decade, following the last peak in vacancy of 20.6
percent which was seen in mid-2007.
• There are no life sciences specific projects currently # of large blocks over 50,000 s.f. 1
under construction, but the North County area has been
among the leaders in delivering new industrial and R&D
product in this cycle. With the vacancy rate so low in
North County’s life sciences product, a push in demand # of requirements 0
Total s.f. requirements 0 s.f.
could woo some of the new creative industrial and R&D
landlords to build out lab space. Pricing
Average asking rent (NNN) $18.90 p.s.f.
(Change year-over-year) +5.0%
Recent activity
2251 Faraday Avenue DNAe
Carlsbad 1891 Rutherford Road
The Wonderful Company Carlsbad
Rba: 66,000 24,000 s.f.
Class A Class B
$289/s.f.
GW Parmaceuticals AutoGenomics
5750 Fleet Street 1600 Faraday Avenue
Carlsbad Carlsbad
22,000 s.f. 60,000 s.f.
Class B Class B
$33.60 NNN

Sales
Under construction
San Francisco Bay Area

The Northern California Bay Area has one of In addition to its 25 venture-backed biotech
the largest aggregation of research companies, the Bay Area boasts some of the
universities and incubators, drawing young largest life sciences companies.
talent from UC Berkeley, Stanford and
UC San Francisco.
Richmond
Walnut Creek
Lafayette Major lab supply:
Oakland
San Francisco 580
Alameda Emerging lab supply:

Bayview
280 Areas with limited lab stock today
880 580 that are poised for growth
Hayward Pleasanton
San Bruno
Union City
supply:
San Mateo Clusters of manufacturing space
Fremont
880 biological or medical device &
Redwood City instrument manufacturing
680
San Francisco Mid-Peninsula

The Mid-Peninsula is the birthplace of genetics engineering that began with Genentech more than four decades ago.
Today the largest players in the life sciences industry, including Roche (Genentech), Gilead, Illumina, Merck, Amgen,
Abbott and the life sciences arm of Google (Verily), have established a foothold in the area, which boasts one of the
densest concentration of highly qualified life sciences professionals.
Oakland / East Bay

The Oakland / East Bay submarket is home to anchor research institutions, prestigious universities and major healthcare
companies like Novartis and Bayer Healthcare. The Oakland Enterprise Zone was established in 1993 to revitalize the
business area by offering tax incentives. The creation of the Enterprise Zone led to the emergence of Berkeley and
Emeryville, which today represent two of the largest life sciences markets in the Bay Area.
Mission Bay
Mission Bay has a smaller life sciences cluster relative to the rest of the Bay Area, however, the region is home to major life
sciences tenants such as Medivation, Illumina and Clovis Oncology. San Francisco’s prestigious UCSF attracts talent from
around the world, further enhancing a well-educated labor pool.
Scorecard
Economic
The greater Bay Area has long been a

major center for the life sciences
industry. Over the past 6 years,
Cluster score: 79.7
advancements in technology have % Life sciences to private Year-over-year
played an integral part of the cluster’s Workforce Total life sciences employment growth
growth and expansion. As tech Employment 67,798 3.7% 6.5%
companies have aggressively Establishments 1,608 0.9% 1.3%
expanded, the result has been a
merging of the two industries. Funding Total life sciences % To total U.S.
Software driven healthcare, big data VC funding $3.1b 30.2%
analytics for medical devices, and NIH funding $944.0m 3.8%
informatics in pharmtech have paired
the local life sciences community with Average asking
notable tech companies. Inventory Total supply % Total vacancy rent (NNN)
20.0M s.f. 5.1% $50.98 p.s.f.
The local Bay Area economy is fueled Life sciences employment composition
by a highly educated talent pool with
strong ties to Stanford, UCSF and Pharma & medicine
6% manufacturing
Berkeley, all of which have notable life 20% non-lab
sciences incubators. Research and Electromedical instrument
using
development remains the largest manufacturing
category for employment within the Life sciences Medical equipment & supplies
local life sciences sector, as employment manufacturing
11%
institutions such as Lawrence 67,798 Testing laboratories
Livermore Labs attracts some of the 51%
lab
top research scientists in the world. 8% using Research & development
4%
laboratories
Combining top talent with strong ties Life sciences establishment composition
to the venture capital community, the
Bay Area is a major location in
attracting private investment. Nearly a 5%
11%
third of the overall U.S. venture capital
funding is funneled to fast moving Electromedical Instrument MFG
local startups, fostered by nearby Medical Equipment & Supplies
Life sciences 12%
experienced life sciences companies. establishments
8% R&D
49%
San Francisco
Mission Bay/China Basin
New developments provide Supply San Francisco
significant opportunity Rentable lab stock

1.1M s.f.
375,079 s.f.
• San Francisco's lab stock has just two existing
availabilities, both of which are subleases. Total vacancy 5.0%
(Change year-over-year) -3.0 ppts
• Medivation put their space at 499 Illinois on the sublease
market in January, a result of rightsizing following its
acquisition by Pfizer. # of large blocks over 50,000 s.f. 1
• There is, however, significant development underway in
Under construction (s.f.) 1.1M s.f.
Mission Bay. Kilroy’s The Exchange is scheduled to
deliver in Q4 2017. The project offers 750,000 square feet Demand
of office and life science space. # of requirements 290
• The submarket continues to attract both life sciences
and technology tenants. In the first quarter, Uber Pricing
purchased an equity stake in the Warriors office Average asking rent (NNN) $60.00-$70.00 p.s.f.
development and plans to occupy 288,800 square feet of (Change year-over-year) +3.0%
it.
• Competition for space in such a tight market has forced
life sciences tenants to look outside of Mission Bay,
including getting creative with San Francisco zoning
laws.
• Mission Bay will continue to evolve as developments
deliver and receive entitlements. Future projects include Recent activity
San Francisco Giants’ Mission Rock, Orton Uber 499 Illinois
Development’s Phase I Pier 70, and Forrest City’s Phase Warriors Development TIAA-CREF
II Pier 70 to the south. All of these projects have Mission Bay Mission Bay
significant commercial and residential components that 288,800 s.f. Rba: 455,069 s.f.
will lend to developing Mission Bay into a denser, more Class A Class A
connected environment. Purchased equity stake in $1,042/s.f.
Warriors Development
The Exchange 1500 Owens

Mission Bay TIAA-CREF
750,000 s.f. Mission Bay
Class A 158,267 s.f.
$58-$67 NNN Class A
$928/s.f.

Sales
Under construction
Mid-Peninsula
South County
Trending office-to-lab Supply South County North County
conversions amid short supply Rentable lab stock

3.0M s.f.
0 s.f.
8.0M s.f.
3.1M s.f.
• Karius, Versartis and Fertility Labs are a few examples of
tenants taking up office space in shell condition and Total vacancy 3.0% 1.2%
building out laboratory space amid a chronically
undersupplied market.
• Bohannon’s Menlo Place office park and Prudential’s # of large blocks over 50,000 s.f. 0 3
Bayshore Technology Park have allowed the buildout of
Under construction (s.f.) 142K s.f. 1.1M s.f.
lab space in office buildings in light of Phase 3’s success
stories in North County, where more than 500,000 square Demand
feet were converted to lab space in the past 12 months. # of requirements 16 15
Total s.f. requirements 578K s.f. 765K s.f.
• A highly active M&A environment will keep producing
frictional movements in total occupancy as Pricing
consolidation strategies take place. However, a limited Average asking rent (NNN) $51.72 p.s.f. $58.68 p.s.f.
existing inventory is expected to keep vacancies (Change year-over-year) +4.6% +1.5%
compressed below 5 percent in 2017.
• Strong demand will continue to support positive rent
growth in 2017 with new space priced at premium rents
around $60.00 per square foot on a triple net basis.
North County Recent activity

Merck AstraZeneca
Speculative construction paying 213 East Grand Avenue

South San Francisco
121 Oyster Point Boulevard
South San Francisco
off, more development to follow 291,000 s.f.

Class A
115,000 s.f.
Class A
Confidential Confidential
• HCP’s The Cove is nearing full occupancy while Phase 3
is continually benefitting from local tenants relocating
into its Genesis project, a former office high-rise
converted into lab space. Both projects broke ground on One Corporate Drive The Cove Phase III and IV
a speculative basis and have experienced a surge in South San Francisco 101 Oyster Point Boulevard
deals as they reach completion. 80,000 s.f. South San Francisco
• More than 1.9 million square feet is expected to break Class A 570,000 s.f.
ground in the first half of 2017 on a speculative basis as Class A
developers seek to take advantage of an environment
that has proven conducive to high occupancy.
• Year-over-year rent growth stalled registering a mild 1.5 Activity key: Leasing
percent increase; however, shrinking available options Sales
are expected to push rents higher by the end of 2017. Under construction
Oakland / East Bay

Oakland Metro
90.2 percent of lab space Supply
East Bay Major
lab
East Bay
Emerging lab
is occupied Rentable lab stock

4.1M s.f.
1.5M s.f.
3.8M s.f.
2.2M s.f.
• Overall Oakland-East Bay’s total vacancy rate currently
sits at 12.8 percent, but the region’s major lab markets, Total vacancy 9.8% 10.2%
such as Berkeley, Emeryville and Livermore, have a total
vacancy rate of 9.8 percent.
• Availabilities are tight for lab space in Oakland Metro, # of large blocks over 50,000 s.f. 1 0
driven by companies looking to rub shoulders with
Under construction (s.f.) 260,000 s.f. 0 s.f.
notable anchor tenants like Bio Energy, Novartis, Bayer
Health and Aduro Biotech. Demand
• As large blocks of available lab space are becoming # of requirements 3 2
scarce, major anchor companies are purchasing land
or investing money in their current site to complete Pricing
build-to-suit projects for new research and Average asking rent (NNN) $48.00 p.s.f. -
manufacturing facilities. (Change year-over-year) +14.3% -
• Wareham Development’s EmeryStation West is currently
underway and is the only project in Oakland Metro that
is spec development.
East Bay
Recent activity
Tri-Valley is a life sciences hub Symic Biomedical
5858 & 5980 Horton St.
The Atrium
Gerding Edlen
for the suburban East Bay Emeryville
43,478 s.f.
Emeryville
RBA: 125,150
Class A Class B
• There is plenty of leasable lab space in the East Bay; $42.00 NNN $240/s.f.
however, much of the product is second generation
space that is slowing becoming outdated.
• Lawrence Livermore National Labs still serves as the
region’s anchor tenant, but other companies have The Atrium EmeryStation West
settled into neighboring submarkets like Emeryville Emeryville
Dublin/Pleasanton, where 10X Genomics and Roche 125,150 s.f. 260,000 s.f.
Molecular Diagnostics currently operate. Class B Class A office/lab
• Biotech firms in the Tri-Valley have been consistently Lease Pending $57.00 NNN
pulling in venture capital funding for several years now,
allowing companies to expand their operations and/or
increase productivity. Activity key: Leasing
• Companies view the suburban East Bay as an ideal Sales
place for the life sciences sector to flourish, Under construction
especially for cost-sensitive startups and Large blocks of space
biotech giants alike.
Seattle-Bellevue
Puget Sound is home to many large life The market continually ranks in the top 10
sciences institutions, but is driven primarily nationally in VC and NIH funding, as well as
by small to mid-sized companies that are patents issued, further demonstrating its
experiencing dynamic growth as a result of position as an innovation hub supported by
significant innovation. some of the world’s largest philanthropic
organizations.
Bothell
Redmond
Ballard/
University
Major lab supply:
District Clusters of established lab stock
5 with long-time industry presence
Queen Anne
Lake
Union Capitol
Hill
Belltown/Denny Regrade
Bellevue CBD Areas with limited lab stock today
Seattle CBD Suburban Bellevue that are poised for growth
Pioneer Square Water Front
90
Mercer
Island Life Sciences manufacturing
South Seattle
supply:
405
Seattle - Bellevue
The life sciences industry is the fifth largest industry in Washington and is responsible for more than $12.5 billion of the
state’s GDP. As the industry continues to expand and capture a wider range of emerging sectors, such as digital health,
the trade organization formerly known as Washington Biotechnology & Biomedical Association has rebranded itself as
Life Science Washington. This name change, coupled with the establishment of the Life Science and Global Health
Advisory workforce panel and the declaration of June 1st as Life Sciences Day in Washington, signals a commitment from
the local life sciences community to make the industry more competitive on a global level.
A number of world-renowned life sciences research institutions and companies based in Washington are clustered in the
Seattle area, one of the nation’s premier life sciences markets. This list includes the Allen Institute for Brain Science, Fred
Hutch, Seattle Biomedical Research Institute, the Institute for Systems Biology, Seattle Genetics and Juno Therapeutics.
The presence of major philanthropic organizations and educational institutions, such as the Bill & Melinda Gates
Foundation and the University of Washington, has much to do with the high life sciences concentration. The Gates
Foundation has funded several major grants to Seattle-based research institutes and the University of Washington
consistently ranks in the top five of institutions receiving NIH funding nationally.
Scorecard
Economic
At $894.1 million, the Seattle cluster

accounted for 3.6 percent of all NIH
funding nationally. The number of life
Cluster score: 48.0
sciences businesses has grown by 3.1 % Life sciences to private Year-over-year
percent year-over-year, as startups Workforce Total life sciences employment growth
continue to pop up. As a result of Employment 24,323 1.8% 1.0%
that, along with growth from Establishments 959 0.9% 3.1%
established companies, employment
grew by 1 percent. While there was a Funding Total life sciences % To total U.S.
notable decline in VC funding in the VC funding $128.0m 1.3%
last 12 months, Paul Allen recently NIH funding $894.1m 3.6%
committed $100 million to create the
Paul G. Allen Frontiers Group. This is a Average asking
scientific fund that specializes in Inventory Total supply % Total vacancy rent (NNN)
biological science. 9.7M s.f. 5.5% $22.03 p.s.f.
Despite a failed trial that caused it to Life sciences employment composition

cancel its flagship cancer drug, Juno
Therapeutics has grown its Pharma & medicine
headcount to about 550 employees. non-lab
The company received a $50 million Electromedical instrument
using
payment from its partner, Celgene, to manufacturing
32%
develop and commercialize its Life sciences Medical equipment & supplies
pipeline internationally. Seattle- employment manufacturing
based Alpine Immune Sciences 24,323 Testing laboratories
landed $48 million in Series A funding 43%
lab
in mid-2016. The company believes using Research & development
this funding will get it through the 8%
initial clinical testing of its cancer and
autoimmune disease drugs. laboratories
Research and development Life sciences establishment composition

companies make up the largest
portion of life sciences institutions in
the area. Seattle is on the cutting 12% 4%
edge of the fast-growing immune-
oncology segment of the life sciences Electromedical Instrument MFG
industry. According to a recent report Medical Equipment & Supplies
Life sciences
by Research and Markets, this establishments 16%
segment is expected to grow from 959 Testing Laboratories
$14 billion in 2019 to $34 billion by R&D
2024. Adaptive Biotechnologies, 44%
which is headquartered in the 11%
Eastlake neighborhood of Lake
Union, has a chance to be a major
player in the space.
Seattle
Lake Union
Rents continue to rise, with lab Supply Lake Union Capitol Hill
space nearly impossible to get Rentable lab stock

2.0M s.f.
1.7M s.f.
0.6M s.f.
0.3M s.f.
• Lake Union’s office market sits at 4.4 percent vacant, but
the lab subset is even tighter, at just 1.3 percent. This is a Total vacancy 1.3% 0.0%
decline of 180 basis points year-over-year.
• Only one block of available space larger than 50,000
square feet is currently being marketed in the area. The # of large blocks over 50,000 s.f. 1 0
space in the Rosen Building, previously occupied by the
Under construction (s.f.) 0.3M s.f. 0 s.f.
University of Washington, is being offered as a long-term
sublease. Demand
• The presence of the life sciences community plays a # of requirements 7 0
Total s.f. requirements 280,000 s.f. 0 s.f.
large role in Lake Union being the most expensive
submarket in the Downtown Seattle cluster. Average Pricing
asking rates for lab space are $39.37 per square foot, Average asking rent (NNN) $39.37 p.s.f. $31.20 p.s.f.
NNN. This is an increase of 14.8 percent year-over-year (Change year-over-year) +14.8% 0.0%
and represents a 19.8 percent premium over traditional
Lake Union office space.
• The Alexandria Center, a 288,850-square-foot building, is
the only life sciences project currently under
construction. It will deliver fully leased in Q2.
• ZymoGenetics said it will vacate the Lake Union Steam
Plant in 2019. Bristol-Myers Squibb acquired the Recent activity
pharmaceutical company for $885 million in 2010. Some Battelle 1st Hill Medical Pavilion
of the Steam Plant’s employees will transition to the 1100 Dexter Avenue N Heitman / NexCore Group
company’s Bothell facility. While this is certainly a hit to Lake Union Capitol Hill
the Lake Union life sciences industry, it does open up 42,575 s.f. Rba: 227,628
about 112,000 square feet of lab space for one of the Class A Class A
region’s other biotech companies. $845/s.f.
Capitol Hill
Rosen Building The Alexandria Center
964 Republican Street 400 Dexter Avenue N
Pill Hill will remain space Lake Union Lake Union
60,375 s.f. 288,850 s.f.
constrained Class A Class A
$47.00 NNN
• Capitol Hill is the home to Harborview Medical Center,
Swedish Medical Center, as well as Benaroya Research Activity key: Leasing
Institute, Theraclone Sciences, CellNetix and PharmaIN. Sales
• The submarket currently has no vacant lab product and Under construction
no new projects planned for the near future. Large blocks of space
Suburbs
Bothell
Several options for growth exist Supply Bothell Redmond
in the suburbs Rentable lab stock

1.6M s.f.
0.5M s.f.
0.5M s.f.
0 s.f.
• Bothell is the second largest life sciences market in the
Seattle area with 2.1 million square feet of inventory Total vacancy 17.2% 4.7%
spread between its two core areas of Canyon Park and
North Creek. The location in the suburbs offers quality,
low-cost alternatives to the more expensive Lake Union # of large blocks over 50,000 s.f. 1 0
and Capitol Hill submarkets in Seattle.
• Vacancy in Bothell declined 90 basis points year-over-
year to the current rate of 17.2 percent. Although there is Demand
only one block of available space larger than 50,000 # of requirements 8 2
square feet, Bothell remains the one submarket in the
region with plentiful available lab space. Pricing
• Seattle Genetics, the largest biotech company in Average asking rent (NNN) $20.95 p.s.f. $16.83 p.s.f.
Washington, has announced that it plans to hire 200 (Change year-over-year) +1.7% +24.9%
employees after adding 150 in 2016 and more than 100
the year before. The company currently has about 900
employees and a market capitalization of $8.3 billion. In
addition, Seattle Genetics is expanding to 100,000
square feet of new office space in its Canyon Park
campus in order to accommodate its growth.
• Alder Biopharmaceuticals, a Bothell-based biotech Recent activity
company, has raised more than $200 million since its ZymoGenetics Acucela
IPO and continues adding to its headcount. 3450 Monte Villa Parkway 21720 23rd Drive SE
Bothell Bothell
51,561 s.f. 17,488 s.f.
Redmond Class B Class B
$26.27 NNN $22.50 NNN
Vacancy plummets and rental

rates rise Nexus Canyon Park Alder Biopharmaceuticals
21720 23rd Drive SE 11804 North Creek Parkway
• Vacancy in Redmond dropped 760 basis points in the Bothell Bothell
last 12 months and currently stands at 4.7 percent. 66,568 s.f. 68,700 s.f.
Rental rates increased 24.9 percent year-over-year, but Class B Class B
at $16.83 per square foot NNN, Redmond is still the $26.00 NNN $17.76 NNN
cheapest option for lab space in the region.
• One of the largest life sciences deals in the last several Activity key: Leasing
years occurred in 2016, when Michigan-based Stryker Sales
acquired Redmond-based Physi-Control International Under construction
for $1.28 billion. The defibrillator maker was previously Large blocks of space
owned by Bain Capital.
Greater Toronto Area

The Greater Toronto Area is home to Toronto is expected to maintain its
Canada’s largest combined life sciences attractiveness as a major life sciences hub as
sector. It is the Canadian home for six of the it continues to invest in major infrastructure
top 10 global pharmaceutical companies developments and leverage the cost
including Roche, Johnson & Johnson and advantage from the federal and provincial
GlaxoSmithKline. It is also home to Canada’s grants, public sector incentive programs and
most concentrated life sciences research tax credit system. Toronto also offers
node, the Discovery District, which has seen significant labour cost savings over
significant expansion over the past decade. established life sciences clusters in American
cities.
Major lab supply:
27
53
Brampton
400 Emerging lab supply:

427
Mississauga Toronto
supply:
403
Downtown Toronto – Discovery District

Toronto’s Discovery District is a unique 2.5 square kilometer research park and a highly concentrated mix of research,
biomedical companies, finance and business support services in the world. The University of Toronto, which is ranked
fourth in North America for medical research spending, is also located in this node. Additionally, top Canadian research
hospitals including Toronto General, St Michael's, Mount Sinai and Hospital for Sick Children are located in the node
Mississauga
The Meadowvale node within Mississauga has developed a substantial reputation for its life sciences cluster. It is a highly
concentrated node of large pharmaceutical companies. However, the city is committed to expand beyond it’s traditional
strengths with goals of creating an innovation district to foster startups.
Markham
Located just north of the city of Toronto, Markham is a bustling technology hub currently looking to leverage its strengths
in high technology and software development to grow its life science sector. Notable companies include Johnson &
Johnson, Huawei and Abbott Laboratories.
Scorecard
Economic
Small companies dominate the life

sciences industry (63 percent of
Ontario companies employ less than
10 people) so the direct impact on real % Life sciences to private Year-over-year
estate is limited. Pharma Workforce Total life sciences employment growth
manufacturers have the largest Employment 36,800 1.1% -12.0%
percentage of medium and large Establishments 2,167 0.9%
companies who are most likely to drive
real estate demand. In 2016, Toronto, Funding Total life sciences % To total Canada
and Canada as a whole, saw venture VC funding CA$391.2m 35.0%
capital funding in the life sciences
surge 115 percent.
Average asking
3.38M s.f. 0.9% CA$17.54 p.s.f.
The Pharmaceutical sub sector Life sciences employment composition

anchors the overall life sciences
ecosystem, consisting of a number of Pharma & medicine
large multinational enterprises that manufacturing
23% non-lab
focus on sales, marketing, clinical using Electromedical instrument
trials, operations support and 37% manufacturing
manufacturing in the GTA. The Life sciences
research, testing and medical employment Medical equipment & supplies
laboratory segments are relatively 9% 36,800 manufacturing
small, but one of the fastest growing Research & development
sectors within life sciences and poised lab
for future growth. 16% using
laboratories
Pharma & medicine manufacturing Life sciences establishment composition

represent 37 percent of life sciences
employment but only 8 percent of
companies, which speaks to the large 14% 8%
size of companies in the Pharma & Medicine MFG
pharmaceutical sub sector. Research 16% Electromedical Instrument MFG
and development, on the other hand,
Life sciences
has a large proportion of small establishments Medical Equipment & Supplies
startups who will benefit from the 30% 2,167
recent surge in venture capital R&D
funding. Medical & Diagnostic Laboratories
32%
Downtown / Mississauga
Downtown Toronto
Tight market conditions in Supply
Downtown
Toronto
Mississauga
Downtown North Rentable lab stock

1.4M s.f.
1.4M s.f.
530,000 s.f.
50,000 s.f.
• Toronto's Discovery District, located within the
Downtown North submarket, has continued to see a Total vacancy 0.0% 6.0%
(Change year-over-year) 0.0 ppts +4.2 ppts
tight rental market over the past year with Q1 2017
vacancy reaching 2.8 percent.
• MaRS Centre, the hub of purpose built leasable lab # of large blocks over 50,000 s.f. 0 0
space in downtown Toronto, now has a 0.0 percent
vacancy rate.
• Under these conditions, shared space within MaRS, Demand
hospital or university facilities is the only lab option, # of requirements 0 2
Total s.f. requirements 0 s.f. 75,000 s.f.
which startups can take advantage of; however, there is
no expansion space for large lab users. Pricing
Average asking net rent (CAD) $28.78 p.s.f. $14.89 p.s.f.
Mississauga (Change year-over-year) +9.8% +3.6%
Major pharma hub, but lacking

lab space
• The Meadowvale node in Mississauga has developed a Recent activity
substantial reputation for its life sciences cluster that Cancer Care Ontario Shire Pharma
focus on sales, marketing, clinical trails, operations 525 University Avenue 22 Adelaide
support and manufacturing for companies like Amgen, Downtown North Financial Core
Baxter, McKesson, GlaxoSmithKline, Hoffman La-Roche 74,000 s.f. 30,200 s.f.
(Roche) and Bayer. Class A Class A
• Lab space dedicated to life sciences in Mississauga is $25.00 net (CAD) CA$30.00 net (CAD)
limited. Most lab space is located within large corporate
campuses or has been constructed within office or flex
buildings by tenants.
• With very limited lab vacancy and no new lab 2476 Argentia Road Amgen
construction currently underway, new proposed lab Meadowvale 6775 Financial Drive
space, like the proposed innovation district, will be key 30,000 s.f. Meadowvale
to expanding lab presence of the life science industry in Class A 63,966 s.f.
Mississauga. $22.00 net (CAD) Class A
CA$19.00 net (CAD)

Sales
Under construction
Westchester County
Just a short distance from Manhattan, Life sciences was one of the only growth
Westchester County is an ideal location for sectors in the area during the recession and
many firms looking to attract and retain its subsequent recovery. Regeneron drove
talent. The access to transportation is the majority of this activity with a massive
plentiful, especially in White Plains and along expansion at 777 Old Saw Mill River Rd.
the 287 corridor.
Major lab supply:

987 117
684
15 Emerging lab supply:

287 that are poised for growth
95
87 Life Sciences manufacturing

supply:
Westchester County
With its proximity to major research institutions and to New York City, Westchester County has been a home to the life
sciences sector for nearly 13 years, employing approximately 10,000 biomedical professionals. For the past decade,
companies such as Regeneron and Acorda have headlined life sciences activity in the area. Regeneron is currently
expanding at its Old Saw Mill River Road complex by another 300,000 square feet. There is also potential for 500,000 square
feet of future redevelopment and development that could accommodate multiple tenants at Ardsley Park, where Acorda
calls home. With few large lab blocks on the market, this will be a highly sought after space. Some of the larger projects that
are coming soon to Westchester include the North 60 and a recent transit-oriented development study for a portion of
Southern Westchester. The planned North 60, which will be located at the Grassland’s Reservation, will encompass 60
acres of biotech and medical space. This will include New York Medical College’s $12.6 million biotechnology incubator
and Fareri Associates’ $500 million, 2 million-square-foot biotech and medical park. The transit-oriented development
study proposed for Southern Westchester developments would include 1.4 million square feet of research and
development space, while repositioning more than 1 million square feet of functionally obsolete office space.
Scorecard
Economic
Westchester has grown into a strong

biotech hub in the Northeast, with
towns like Tarrytown and Yonkers
Cluster score: 35.3
offering large office and lab campuses % Life sciences to private Year-over-year
for firms in the life sciences industry. Workforce Total life sciences employment growth
Recently, the growing presence of life Employment 7,759 2.2% 3.9%
sciences firms is driving spec Establishments 214 0.6% 3.9%
construction that is expected to attract
more notable tenants to the area. Funding Total life sciences % To total U.S.
Average asking
2.66M s.f. 7.0% $49.00 p.s.f.
Dominating Westchester’s life Life sciences employment composition

sciences industry is Regeneron, the
biomedical whale that has kept their Pharma & medicine
11% 1%6% manufacturing
lab and headquarters in the county 6% non-lab
since 1989. The company’s success Electromedical instrument
using
and industry lauded work manufacturing
environment have helped to draw Life sciences Medical equipment & supplies
other firms to the county. 2016 saw employment manufacturing
7,759 29% Testing laboratories
revenues for Regeneron, New York’s
largest biopharmaceutical employer, lab
rise 18 percent to $4.86 billion. 47% Research & development
using

laboratories
Westchester is currently experiencing Life sciences establishment composition

very low vacancy rates for lab and
research space, with submarkets
varying between 5 and 10 percent. 3%
Ambitious building projects, both 28%
planned and underway, will add Electromedical Instrument MFG
significantly more inventory. 17% Medical Equipment & Supplies
Life sciences
establishments
214 Testing Laboratories
R&D
29%
Westchester County
I-287 West Corridor
Regeneron drives most activity Supply
I-287 West
Corridor
Westchester
South
in I-287 Corridor Rentable lab stock

0.25M s.f.
1.75M s.f.
0.16M s.f.
0.5M s.f.
• Regeneron announced their purchase of the
Total vacancy 6.0% 10.0%
Landmark at Eastview campus this quarter. The
company’s longtime headquarters was bought from
Biomed Realty for $720 million. Remaining alongside
# of large blocks over 50,000 s.f.
Regeneron on the campus is Progenics 0 0
Pharmaceuticals. Under construction (s.f.) 0.3M s.f. 0 s.f.
• The company is also continuing with its plan to
Demand
develop the 100-acre parcel adjacent to their
headquarters into a 1 million-square-foot research # of requirements 1 3
Total s.f. requirements 0.25M s.f. .25M s.f.
and development campus.
• The dearth of suitable lab space is driving landlords Pricing
and owners to convert existing office buildings in the Average asking rent (NNN) $52.00 p.s.f. $45.00 p.s.f.
Corridor for lab/life science use. (Change year-over-year) 0.0% 0.0%
Westchester South
Westchester Bioscience and Recent activity

Technology Center expected to
777 Old Saw Mill River Road
create thousands of jobs Regeneron
West I-287 Corridor
• A recent initiative to strengthen Westchester County RBA: 1,180,480 s.f.
has begun with a $1.2 billion private investment to Class A
create a 3 million-square-foot complex on a vacant $610/s.f.
site adjacent to the Westchester Medical Center and
New York Medical College.
• The project will add 2.25 million square feet of 1 Rockwood Road
biotech/research space upon completion, with the Regeneron
first phase slated to bring 220,000 square feet of this Westchester North
space to the market. RBA: 383,000 s.f.
• Acorda Therapeutics remains the largest tenant in Class A
the market. $130/s.f.

Sales
Under construction
Want to know more? Contact:
Roger Humphrey Richard McBlaine Dan Loughlin

Executive Managing Director International Director Managing Director
Life Sciences Corporate Client Development Brokerage, New Jersey
+1 (908) 698-2867 +1 (312) 228-2793 +1 (973) 939-3869
Roger.Humphrey@am.jll.com Richard.Mcblaine@am.jll.com Dan.Loughlin@am.jll.com
Lisa Strope Wes Simon Megan Shields

Director, New England Research Analyst, Boston Research Analyst, Boston Research
Americas Research Americas Research Americas Research
+1 (617) 531-4243 +1 (617) 531-4216 +1 (617) 531-4243
Lisa.Strope@am.jll.com Wes.Simon@am.jll.com Megan.Shields@am.jll.com
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US Life Sciences Outlook 2017

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Life Sciences

United States | 2017

A tale of two coasts:

Life sciences in 2017:

The evolution of U.S. Life Sciences Clusters

United States life sciences landscape:

State of the industry:

State of the industry:

State of the industry:

A tale of two coasts:

Top U.S. submarkets Asking rent ($ NNN) Vacancy

East Cambridge (Boston) $75.05 p.s.f. 6.8%

North County (Bay Area) $58.68 p.s.f. 1.2%

I-287 West (Westchester) $52.00 p.s.f. 6.0%

Torrey Pines (San Diego) $50.40 p.s.f. 5.9%

Lake Union (Seattle) $39.37 p.s.f. 1.3%

Thriving Cluster Breakout Cluster Emerging Cluster

Life sciences in 2017:

U.S. cluster rankings

Weighted Weighted Life sciences employment concentration:

The evolution of U.S. Life Sciences Clusters

Rising rents, R&D costs and employee wages

History of life sciences in the U.S.

1848: 1950-1970: 1959: 1973: 1975-present:

Founding of the Rise in product Founding of Discovery of Major spike in

United States life sciences landscape:

State of the industry:

Human capital is what keeps the wheels

In the past five years, the average employee

Wages for R&D employees

$135,311 A widespread strategy being employed,

Taken as a whole, it is clear that access to a deeper pool of

Companies opting to remain in top tier

Source: Bureau of Labor Statistics

State of the industry:

In an effort to meet high demand in tight

Facing fierce competition for space and labor, today’s life

State of the industry:

Los Angeles/Orange County

Demand for life sciences space remains extremely high as

The integration of data analytics into the life

Major lab supply:

Emerging lab supply:

The Greater Boston Area is home to

Boston’s economy is fueled by a large Life sciences employment composition

The region’s strong life sciences Life sciences establishment composition

61% Medical & Diagnostic Laboratories

VC and M&A markets

lure tenants to the suburbs Rentable lab stock

Bioverativ 65 Hayden Avenue

Activity key: Leasing

underway Rentable lab stock 1.4M s.f. 1.1M s.f.

Best-in-class life sciences

Major lab supply:

Emerging lab supply:

Life Sciences manufacturing

Suburban North Shore

Companies in the life sciences

Chicago benefits from a highly skilled Life sciences employment composition

21% Medical & diagnostic

Life sciences establishment composition

Chicago is home to multi-national and

Lake County Rentable lab stock

North Cook County