Alexandria Real Estate Equities, Inc. Announces Long-Term 258,581 RSF Lease With Longstanding Tenant Vaxcyte, Inc. at the Alexandria Center for Life Science - San Carlos Mega Campus

Rhea-AI Summary

Alexandria Real Estate Equities (NYSE: ARE) has secured a 10-year lease with Vaxcyte for 258,581 RSF at the Alexandria Center for Life Science – San Carlos mega campus. The agreement includes new space and extends the existing lease for Vaxcyte, an anchor tenant since 2021. The campus features 739,157 RSF currently 97.4% occupied and approximately 1.4 million RSF of future development opportunities. The facility offers state-of-the-art Labspace infrastructure, amenities including conference spaces, fitness center, and dining options, with convenient access to transportation and local attractions.

Positive

• Secured long-term 10-year lease for 258,581 RSF
• High occupancy rate of 97.4% at the San Carlos campus
• Significant expansion potential with 1.4 million RSF for future development

Negative

• None.

Insights

Real Estate Investment Analyst

This lease agreement represents a significant win for Alexandria Real Estate Equities, demonstrating strong tenant retention and expansion in a challenging commercial real estate market. The 10-year lease commitment for 258,581 RSF provides stable, long-term cash flow and validates ARE's specialized life science real estate strategy.

The San Carlos mega campus shows impressive metrics with 97.4% occupancy and substantial future development potential of 1.4 million RSF. This transaction reinforces ARE's competitive positioning in the important San Francisco Bay Area life science market, while the long-term nature of the lease provides valuable visibility into future revenue streams.

The renewal and expansion by an established tenant like Vaxcyte indicates strong demand for ARE's premium life science facilities, supporting property values and potential rent growth. This helps validate ARE's investment in high-end amenities and strategic location selection.

PASADENA, Calif., Nov. 21, 2024 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative mega campuses in AAA life science innovation cluster locations, today announced that it executed a 10-year lease with Vaxcyte, Inc., a clinical-stage biopharmaceutical company working to protect humankind from the consequences of bacterial diseases, for a total of 258,581 RSF at 825 Industrial Road on the Alexandria Center^® for Life Science – San Carlos mega campus in the San Francisco Bay Area. The lease includes new space as well as an extension of the lease term for its existing space.

Vaxcyte has been an anchor tenant at the Alexandria Center for Life Science – San Carlos since it opened in 2021. The company's expansion on the highly differentiated mega campus with a long-term lease affirms the Alexandria Center as the flagship destination for life science innovation in the Mid-Peninsula region. The purpose-built mega campus features significant options for future growth in addition to best-in-class essential Labspace^® infrastructure in a compelling location, which offers convenient access to Highway 101 and walkability to Caltrain, boutique shops and restaurants, and is sought after by disruptive life science companies. Alexandria has created and operates this award-winning mega campus with inspiring design and people-centered amenities, including cutting-edge conference and meeting spaces, an expansive courtyard, a contemporary eatery, an artisanal coffee bar and a fully equipped fitness and wellness center — all intended to enable its tenants to recruit and retain the best talent to advance their mission-critical work. 

With 739,157 RSF in operation that is 97.4% occupied and approximately 1.4 million RSF of future development opportunities as of September 30, 2024, the Alexandria Center for Life Science – San Carlos is positioned to provide the scale and flexibility that is crucial to meeting the evolving needs of leading life science companies as they work to translate scientific discoveries into the next-generation of life-changing medicines to benefit patients.

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 with our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator and developer of collaborative mega campuses in AAA life science innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle and New York City. As of September 30, 2024, Alexandria has a total market capitalization of $33.1 billion and an asset base in North America that includes 41.8 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. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in 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 Alexandria's impact on its tenants' ability to recruit and retain top talent and on its tenants' businesses in their pursuit of novel treatments and cures; the features and amenities of the Alexandria Center for Life Science – San Carlos mega campus; and Alexandria's ability to continue to attract life science companies and meet their evolving needs. 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 size of Vaxcyte's new lease with Alexandria Real Estate Equities (ARE)?

Vaxcyte's new lease with Alexandria Real Estate Equities (ARE) is for 258,581 RSF at the Alexandria Center for Life Science - San Carlos mega campus.

What is the current occupancy rate of ARE's San Carlos campus as of September 2024?

The Alexandria Center for Life Science - San Carlos has a 97.4% occupancy rate for its 739,157 RSF in operation as of September 30, 2024.

How much future development space does ARE have at the San Carlos campus?

ARE has approximately 1.4 million RSF of future development opportunities at the Alexandria Center for Life Science - San Carlos campus.