CBRE

FIGURES|SANFRANCISCOBAYAREALIFESCIENCES|Q42025

Asthedevelopmentcyclesubsides,

themarketentersanewphase

30.2%

VacancyRate

600K

SFNetAbsorption

226K

SFUnderConstruction(includesconversions)

$5.78

AverageDirectLeaseRateNNN/Sq.Ft.,monthly

133K

LifeScienceIndustryEmploymentSanFrancisco&SanJoseMSA

2.6M

SFTenantsintheMarket

Note:Arrowsindicatechangefrompreviousquarter.

MARKETHIGHLIGHTS

?DuringQ42025,theSanFranciscoBayArealabormarketexhibitedresilience,withatotallaborforceof3.58millionand3.42millionemployed.Theunemploymentrateexperiencedamodestincrease,reaching4.4%quarter-over-quarter.Withinthelifesciencessector,employment

NetAbsorptionMSF

remainedstable,totaling132,945.

?TheBayArea'slifesciencesrealestateshowedimprovedfundamentalsinthefinalquarterof

2025.Theoverallvacancyratedeclinedto30.2%,representinga103-basis-pointdropfromthepriorquarter.Thedeclinewaslargelydrivenbydiminishingsupplyofnewconstruction

deliveriesandmeasurableoccupancygrowth.

?Marketoccupancygrewbynearly600,000sq.ft.inQ42025,bringingtheyear-to-datetotalintheblackat226,000sq.ft.

?ThecombinedaveragedirectaskingrateforlifesciencesfacilitiesintheBayAreawas$5.78persquarefootonamonthlyNNNbasis(NNN).Downwardpressureonrentalratespersistedasthemarketsoughttoestablishapricefloor.

?LeasingactivitygreatlyreboundedQ42025,withatotalvolumeof1.2millionsq.ft.,morethandoubletheamountreportedinthepreviousquarter.

Vacancy

35%

28%

21%

14%

7%

0%

3.0

2.5

2.0

1.5

1.0

0.5

0.0

-0.5-1.0-1.5

-2.0

FIGURE1:SanFranciscoBayAreaVacancy&NetAbsorptionTrend

NetAbsorption(MSF)Vacancy

2010201120122013201420152016201720182019202020212022202320242025

Source:CBREResearch,Q32025

1CBRERESEARCH?2026CBRE,INC.

FIGURES|SANFRANCISCOBAYAREALIFESCIENCES|Q42025

2CBRERESEARCH?2026CBRE,INC.

MARKETOVERVIEWFIGURE2:SanFranciscoBayAreaSubmarketStatistics

AtthecloseofQ42025,theSanFranciscoBayArea’slifesciencesinventorystoodat

44.1millionsq.ft.,withanaverageaskingrateof$5.78NNN.Thesectorcontinuesto

navigateachallengingmacroeconomicenvironment,shapedbyfactorssuchas

constraintsonNationalInstitutesofHealth(NIH)fundingandpersistentpharmaceuticaltariffs.Thesepressureshavepromptedmanymid-caplifesciencesfirmstoreassess

theirrealestatestrategies,contributingtoanuptickinsubleaseavailabilityacrosstheregion.

Despitethesechallenges,SanFranciscoPeninsula,theregion’slargestsubmarketwith

24.5millionsq.ft.,witnessedimprovingfundamentalsinQ42025,asvacancyreported35.2%atyear-end—representinga270-basis-pointdeclinefromthepriorquarter.Thisimprovementwassupportedbyrobustleasingmomentum,asthePeninsulaposted

808,000sq.ft.ofnetabsorptioninQ4,bringingannualabsorptiontoapositive716,000sq.ft..

Leasingactivitysurgedpastthefive-yearquarterlyaverage,with1.2millionsq.ft.inQ42025.ThePeninsulaaccountedfor87%oftotalleasingvolume,underscoringits

dominanceintheregionalmarket.Notably,threeleasesexceeded100,000sq.ft.,as

tenantscapitalizedonfavorableconditionstosecurehigh-qualityspaceandcompetitivedealeconomics.

Despiteelevatedleasingactivity,tenantdemandremainedresilient.Activerequirementstotaled2.6millionsq.ft.across36mandates,consistentwithboththepreviousquarterandyear-over-yearlevels.Thissustaineddemandreflectsongoinginvestmentinnext-generationtherapies,platformtechnologies,andbiomanufacturingcapabilities.

Onthesupplyside,IQHQ’sElcoYardsTheShopdelivered226,000sq.ft.inQ4,fully

preleasedpriortocompletion.Beyondthismilestone,onlytwooffice-to-lifescience

conversionsremainunderwayatGenesisSkyway,signalinganendinspeculative

development,fornow.Since2020,theBayAreahasaddedanimpressive14.4millionsq.ft.oflifesciencesproductthroughground-upconstructionandadaptivereuseprojects,reinforcingitspositionasaglobalinnovationhub.

Whilecapitaldeploymentdeceleratedearlierin2025,recentindicatorssuggesta

potentialreboundininvestorconfidence.Significantdrypowderreservesarepoisedtore-enterthemarket,targetingopportunitiesalignedwithprecisionmedicine,cellandgenetherapies,andAI-drivendrugdiscovery.Thesetrends,coupledwiththeregion’senduringstrengths—anchoredbyinstitutionssuchasStanfordUniversity,UCSF,andUCBerkeley—continuetounderpintheBayArea’scompetitiveadvantageinlife

sciencesinnovation.

Source:CBREResearch,Q42025

Submarket

Net RentableArea(Sq.Ft.)

Direct

Vacant

(Sq.Ft.)

SubleaseVacant(Sq.Ft.)

TotalVacancy(%)

TotalAvailability(%)

Average DirectLeaseRate

Qrtly.

NetAbs.

YTD

Net

Abs.

North880Corridor

5,839,999

1,430,049

235,687

28.5%

30.3%

$5.85

-56,223

-84,492

Central880Corridor

2,195,131

393,857

141,346

24.4%

35.6%

$3.70

0

-24,174

Oakland

8,035,130

1,823,906

377,033

27.4%

31.8%

$5.40

-56,223

-108,666

680Corridor

2,422,553

312,734

162,537

19.6%

19.6%

$2.48

-33,559

-95,462

South880Corridor

3,758,813

673,538

129,869

21.4%

25.5%

$2.68

-10,659

-66,740

CentralSiliconValley

2,721,250

151,702

43,155

7.2%

9.1%

$2.64

-104,550

-93,623

NorthernSiliconValley

1,132,577

228,380

118,975

30.7%

34.1%

$3.77

10,731

-124,548

SiliconValley

7,612,640

1,053,620

291,999

17.7%

20.9%

$2.90

-104,478

-284,911

NorthernPeninsula

15,067,185

4,352,672

988,122

35.4%

38.0%

$6.37

619,136

641,173

CentralPeninsula

6,266,295

2,301,413

252,422

40.8%

45.4%

$6.58

192,885

-43,309

SouthernPeninsula

3,157,265

673,287

55,535

23.1%

24.4%

$6.27

-4,380

117,726

Peninsula

24,490,745

7,327,372

1,296,079

35.2%

38.1%

$6.43

807,641

715,590

SanFrancisco

757,725

290,947

126,285

55.1%

55.1%

$7.40

-13,515

-345

TotalBayAreaMarket

43,318,793

10,808,579

2,253,933

30.2%

33.2%

$5.78

599,866

226,206

Source:CBREResearch,Q42025

FIGURES|SANFRANCISCOBAYAREALIFESCIENCES|Q42025

3CBRERESEARCH?2026CBRE,INC.

FIGURE4:SanFranciscoBayAreaLifeSciencesConstructionDeliveriesTrend

MillionSq.Ft.

6.0

4.8M

5.0

4.0

3.02.5M

1.4M

2.01.9M1.7M2.0M2.1M

1.0M

1.00.7M0.7M

0.2M0.1M0.0

201420152016201720182019202020212022202320242025Source:CBREResearch,Q42025

FIGURE6:SanFranciscoBayAreaLifeSciencesRentalRatebyMarketNNN

$12

$10

$8

$6

$4

$2

$0

55.1%

35.2%

27.4%

19.6%17.7%

$2.48$2.90$5.40$6.43$7.40

680CorridorSiliconValleyOaklandPeninsulaSanFrancisco

DirectRentVacancy

Source:CBREResearch,Q42025

60%

50%

40%

30%

20%

10%

0%

FIGURE5:SanFranciscoBayAreaNotableLifeSciencesLeaseTransactionsQ32025

Tenant

Submarket

SFLeased

Type

UCSF

SanFranciscoPeninsula

280,472

NewLease

Confidential

SanFranciscoPeninsula

180,017

NewLease

Neuralink

SanFranciscoPeninsula

142,815

NewLease

TwistBioscience

SanFranciscoPeninsula

93,971

Renewal/Expansion

Confidential

SanFranciscoPeninsula

74,907

NewLease

Confidential

SanFranciscoPeninsula

41,755

NewLease

OctaveBioscience

SanFranciscoPeninsula

39,055

NewLease

Q'ApelMedical

SiliconValley

35,690

Renewal

CytomXTherapeutics

Oakland

35,584

NewLease

Confidential

SanFranciscoPeninsula

34,463

NewLease

Source:CBREResearch,Q42025

FIGURE7:SanFranciscoBayAreaTopLifeSciencesOccupiers

CompanyName

Genentech

ThermoFisherScientific

Intuitive

Penumbra,Inc.

Abbott

Bio-Rad

Gilead

EikonTherapeutics

Johnson&Johnson

Verily

Roche

Cepheid

Exelixis

10XGenomics

BristolMyersSquibb

Vaxcyte

AmgenInc.

Merck

AbbVie

VarianMedicalSystems

Source:CBREResearch,Q42025

FIGURES|SANFRANCISCOBAYAREALIFESCIENCES|Q42025

MarketMap(BayAreaLifeSciencesTalentDensity&Biological/BiomedicalDegrees)

Source:CBREResearch,LocationIntelligence,Q42025

Definitions

LifeSciencesMethodology:highlyspecializedfacilitieswithexceptionalpower,plumbing,ventilation,andextensivelaboratorybuildout,whichmeetscurrentlifesciencesuserneeds.

LeasableInventorySF:specializedlifesciencesinventoryorlabspacethatisownedbyaninvestor/developerandleasedtoalife

sciencescompany,DirectVacantSF:availablevacantspacemarketedbyalandlordofalifesciencesfacility.SubleaseVacantSF:

availablevacantspacemarketedbyasublessorofalifesciencesfacility.VacancyRate:sumofdirectandsubleasevacantSFdivided

byleasableinventorySF.AvailabilityRate:totalavailableoccupiedandvacantspacemarketedbyalandlordorsublessordividedby

leasableinventorySF.AverageDirectLeaseRate:averagedirectrentforspeculativeandsecondandthirdgenerationlifesciences

build-outonaNNN/sq.ft.,monthlybasis.UnderConstruction:projectscurrentlyunderdevelopmentandscheduledforcompletionbeyondreportingquarter.Deliveries:projectsdeliveredoveraspecifiedtimeframe.NetAbsorption:changeinpreviouslyoccupied

space,measuredinSFandrecordedasapositivevalueforoccupancygrowthornegativeforreduction.Lifescienceoccupationsareinpharmaceuticalandmedicinemanufacturingandscientificresearchanddevelopmentservices.LifeScienceIndustryEmployment:Pharmaceuticalandmedicinemanufacturing;Scientificresearchanddevelopmentservices;andnavigational,measuring,

electromedical,andcontrolinstrumentsmanufacturing.Geographies:North880Corridor(Richmond,Berkeley,Emeryville,and

Alameda);Central880Corridor(SanLeandro,Hayward,andUnionCity);680Corridor(LivermoreandPleasanton);South880Corridor(Newark,Fremont,andMilpitas);CentralSiliconValley(SanJose,SantaClara,Campbell,andLosGatos);NorthernSiliconValley

(Cupertino,Sunnyvale,andMountainView);SouthernPeninsula(PaloAltoandMenloPark);CentralPeninsula(SanMateo,FosterCity,RedwoodCity,Belmont,SanCarlos);NorthernPeninsula(Brisbane,SouthSanFrancisco,andBurlingame);andSanFrancisco.

Contact

KonradKnutsen

Director

NorthernCA&GreaterLA

Konrad.Knutsen@

EmikoAkamaGarren

SeniorAnalyst

Emiko.A