Alexandria Real Estate Equities, Inc. Announces Long-Term 127,382 RSF Lease With Top 20 Pharmaceutical Company and Longstanding Credit Tenant for New R&D Life Science Center at the SD Tech by Alexandria Mega Campus in San Diego

Rhea-AI Summary

Alexandria Real Estate Equities (NYSE: ARE) announced a 10-year lease agreement with a top 20 pharmaceutical company for a new R&D center at their SD Tech mega campus in San Diego. The lease covers 127,382 RSF, expanding the tenant's footprint by 53% and including significant expansion options. This deal brings Alexandria's 253,079 RSF Class A+ development to 70% leased ahead of its 2025 delivery. Alexandria's San Diego projects are now 94% leased, showcasing the strength of its mega campus platform. The company, a pioneer in life science real estate, has been active in San Diego since 1994, with 14.3 million RSF in assets and a 95.2% occupancy rate in its operational properties.

Positive

• Secured a 10-year lease for 127,382 RSF with a credit tenant.
• Achieved 70% leasing of 253,079 RSF development before 2025 delivery.
• Increased tenant's footprint in San Diego by nearly 53%.
• San Diego mega campus developments are 94% leased.
• High occupancy rate of 95.2% in operational properties.

Negative

• None.

News Market Reaction – ARE

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PASADENA, Calif., June 25, 2024 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative life science mega campuses in AAA innovation cluster locations, today announced that a top 20 pharmaceutical company and longstanding credit tenant has increased its San Diego footprint by nearly 53% with the execution of a 10-year lease for 127,382 RSF, with significant expansion options, for a new R&D center at 10075 Barnes Canyon Road on the SD Tech by Alexandria mega campus in the Sorrento Mesa submarket of San Diego. Purposefully curated to enable its tenants to attract, retain and inspire top talent, this mega campus provides an exceptional suite of bespoke amenities, which include multiple eateries, a health and wellness center, premier meeting and conference spaces, an expansive lawn and a seven-acre central park. 

With this strategic anchor lease, the 253,079 RSF Class A+ development, which is targeting LEED Gold Core & Shell and Fitwel certifications, is now 70% leased ahead of its anticipated initial delivery in 2025. The lease also brings Alexandria's 1.2 million RSF pipeline of under construction mega campus development projects in San Diego to 94% leased, demonstrating the advantages of the company's differentiated mega campus platform and leading life science industry brand.

Alexandria — the pioneer and first mover in life science real estate — entered the San Diego region in June 1994, and for the past three decades, it has been at the vanguard of driving the development, expansion and transformation of the region into one of the nation's top life science clusters. Through Alexandria's strategic, long-term focus on aggregating high-quality assets into desirable, well-located mega campuses like SD Tech and forming trusted relationships within the life science community, the company has established a dominant and highly respected market presence in the heart of the San Diego Science Sector, which primarily comprises the Torrey Pines, University Town Center and Sorrento submarkets. As of March 31, 2024, Alexandria's irreplicable asset base in San Diego consists of 14.3 million RSF, with 7.8 million RSF in operation that is 95.2% occupied, outperforming market occupancy.

About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500^® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator and developer of collaborative life science mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle and New York City. Alexandria has a total market capitalization of $34.4 billion and an asset base in North America of 74.1 million SF as of March 31, 2024, which includes 42.2 million RSF of operating properties, 5.3 million RSF of Class A/A+ properties undergoing construction and one committed near-term project expected to commence construction in the next two years, 2.5 million RSF of priority anticipated development and redevelopment projects, and 24.1 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity and success. Alexandria also provides strategic capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns and greater long-term asset value. For more information on Alexandria, please visit www.are.com.

Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding the impact of Alexandria's mega campus on its tenants' ability to attract, retain and inspire top talent; LEED and healthy building certifications; and the features and amenities of the SD Tech by Alexandria mega campus. These forward-looking statements are based on Alexandria's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by Alexandria's forward-looking statements as a result of a variety of factors, including, without limitation, the risks and uncertainties detailed in its filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release, and Alexandria assumes no obligation to update this information. For more discussion relating to risks and uncertainties that could cause actual results to differ materially from those anticipated in Alexandria's forward-looking statements, and risks and uncertainties to Alexandria's business in general, please refer to Alexandria's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and any subsequently filed quarterly reports on Form 10-Q. 

CONTACT: Joel S. Marcus, Executive Chairman & Founder, (626) 578-9693, jmarcus@are.com

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SOURCE Alexandria Real Estate Equities, Inc.

FAQ

What is the significance of the new lease for Alexandria Real Estate Equities (ARE)?

The new 10-year lease for 127,382 RSF with a top 20 pharmaceutical company highlights ARE's strong position in the life science real estate market and brings their upcoming development to 70% leased ahead of its 2025 delivery.

How much did the tenant expand their footprint at Alexandria's San Diego campus?

The tenant increased their footprint by nearly 53%, leasing 127,382 RSF for a new R&D center.

How leased are Alexandria Real Estate Equities' San Diego mega campus developments?

ARE's San Diego mega campus developments are 94% leased, demonstrating the success of their campus platform.

What is the occupancy rate of Alexandria Real Estate Equities' operational properties in San Diego?

Alexandria's operational properties in San Diego have an occupancy rate of 95.2%, outperforming the market.

When did Alexandria Real Estate Equities begin its operations in San Diego?

Alexandria Real Estate Equities entered the San Diego market in June 1994.