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Q3 2021 Life Science Report

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Lake Union

  • Construction on over 1.2 million sq. ft. of space around Lake Union has continued at a steady pace, with BioMed’s 500,000 sq. ft. Dexter Yard project and Unico’s 211,000 sq. ft. Cascadian project scheduled to deliver Q4 2021.
  • Vacancy in Lake Union is currently 2.9%, which is expected to grow in the coming quarters as new space delivers.
  • Though leasing activity has slowed in Q3 2021, 700,000 sq. ft. of pent-up demand remains around Lake Union as tenants are likely weighing their options among the four projects currently under construction.
  • An undisclosed buyer purchased a 70% stake in 400 Dexter (the Juno Therapeutics Building) from Alexandria Real Estate this quarter for $254.8 million, or $1,255/sf. This is Alexandria’s second landmark sale in the previous four quarters, the first being their $450 million sale of a 70% stake in three other life science properties in Eastlake to Clarion Partners. 
  • Alexandria appears to have scrapped their plans for the Pioneer Square submarket in what came as a bit of a surprise in Q3. The full block sale, comprised of the Pacific Commercial Building and 201 S. Washington St., were sold to Rubicon Partners for $24.1 million in August. Alexandria acquired the properties in 2018 and 2019 for roughly $32.8 million.
  • Da Li Development, originally planning a condo tower for their lot at 222 Fifth Ave. S., announced a pivot to life sciences in September. They’re now proposing an eight story, 188,000 sq. ft. lab-capable development, highlighting the continued national and international interest in Puget Sound life science real estate.

Bothell

  • With their acquisition of Canyon Park 228, Alexandria Real Estate has now acquired over 1.3 million sq. ft. of space in Bothell over the past four quarters, deploying just shy of $400 million across six properties.
  • Driven in large part by Alexandria’s acquisitions and subsequent repositioning, vacancy in the Bothell cluster has crept up to 11.6%. As well-funded tenants look North for less costly lab space and to build out their manufacturing arms, this rate will compress substantially. 
  • Despite the increased vacancy, rental rates have continued their steady rise in Bothell, this quarter seeing asking rates near $28/sf.
  • The renovation of Rialto Capital / Steelwave’s Nexus Research Center to the “Element” Research Center has pressed on throughout the pandemic, delivering late Q4 2021 or early Q1 2022.
  • The “J.POD” manufacturing facility, a unique 130,000 sq. ft. development fully leased to Evotec Biologics, delivered in Redmond. This facility took just 19 months to deliver after breaking ground in 2019 (compared to the average of around 4 years for traditional facilities), and will allow Evotec to discover, develop, and deliver therapies under one roof.

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Q3 2021 Life Science Report

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Jacob Pavlik

Research Manager

Seattle

Jacob Pavlik joins the Colliers team after working in the Economic Development and Planning departments for the cities of Hillsboro, Oregon and Alexandria, Virginia, respectively.  At Colliers, he leads a team of researchers to  collect, analyze, and synthesize market data for Puget Sound and Portland. He loves the challenge of taking complex data and making it easily digestible for a wide audience. He assists brokers with research specific to their client's needs, including geovisualizatoin and micromarket analysis.

His authentic passion for commercial real estate is seen most clearly when Jacob explores his local urban ecosystem and travels to new cities around the world to see how they function and relate to each other. He likes to see the built environment adapt to the changing needs, desires, and behaviors of the people who populate it. These functions fit perfectly into Jacob's role as Research Manager, telling the story of how commercial real estate in the Pacific Northwest evolves over time.

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