Alexandria Real Estate Equities, Inc. Executes Largest Life Science Lease in Company History With Longtime Multinational Pharmaceutical Tenant for a 466,598 RSF Build-to-Suit Research Hub at the Campus Point Megacampus in San Diego

Rhea-AI Summary

Alexandria Real Estate Equities (NYSE:ARE) has secured its largest-ever life science lease, signing a 16-year agreement with a longtime multinational pharmaceutical tenant for a 466,598 RSF build-to-suit research hub at the Campus Point Megacampus in San Diego.

The Campus Point development currently comprises 1.3 million RSF in operation with 98.8% occupancy. The property has potential to expand to 2.6 million RSF, representing a 420% increase from initial acquisition. Construction of the new facility will begin in 2026 with expected completion in 2028. The project targets LEED Gold certification and 100% electrification.

Positive

• Secured largest life science lease in company's 31-year history with 16-year term
• Campus Point maintains exceptional 98.8% occupancy rate across 1.3 million RSF
• Development potential to double campus size to 2.6 million RSF
• Strong tenant retention demonstrated through longtime pharmaceutical tenant expansion

Negative

• Significant construction period with 2-year timeline (2026-2028)
• Large single-tenant concentration risk with this major lease

Insights

Commercial Real Estate Analyst

ARE secures landmark 16-year lease with pharmaceutical tenant, strengthening its premium San Diego campus and long-term revenue stream.

Alexandria's execution of the largest life science lease in its 31-year history represents a significant milestone for the company's San Diego portfolio. The 16-year commitment for a 466,598 RSF build-to-suit facility demonstrates exceptional tenant retention and validates ARE's Megacampus strategy. With the Campus Point property already achieving 98.8% occupancy across its 1.3 million RSF in operation, this deal further solidifies Alexandria's dominant position in the life science real estate sector.

The lease structure provides Alexandria with high-quality, long-term cash flow security while simultaneously advancing its development pipeline. This transaction will activate a portion of the company's 1.3 million RSF future development opportunities at Campus Point, potentially increasing the campus to 2.6 million RSF—a remarkable 420% scale increase from initial acquisition.

The deal structure shows sophisticated planning: construction commences in 2026 with delivery in 2028, allowing Alexandria to phase capital deployment while securing future revenue. The company's ability to attract and retain multinational pharmaceutical tenants demonstrates its competitive moat in life science real estate, particularly valuable given current market conditions where pharmaceutical R&D spending remains resilient despite broader economic pressures.

The amenity-rich campus environment featuring wellness centers, conference facilities, and recreational spaces represents Alexandria's understanding that tenant retention in the life science sector increasingly depends on providing environments that help tenants attract specialized talent. By targeting LEED Gold and Fitwel certifications, Alexandria is also positioning this asset to meet growing ESG requirements from institutional tenants, potentially commanding premium rents while reducing operational costs through energy efficiency.

PASADENA, Calif., July 14, 2025 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), the first, preeminent, longest-tenured and pioneering owner, operator and developer of collaborative Megacampus^™ ecosystems in AAA life science innovation cluster locations, today announced that it has executed a 16-year lease with a longtime multinational pharmaceutical tenant for a 466,598 RSF build-to-suit research hub on the Campus Point by Alexandria Megacampus in the University Town Center submarket of San Diego. This milestone — the largest life science lease in Alexandria's 31-year history — underscores the uniquely targeted demand for Alexandria's leading destination for life science innovation in San Diego.

"Campus Point is a crown jewel of Alexandria's Megacampus platform, and we are honored that one of our long-standing, highly innovative tenants has selected it as the site for a new R&D hub," said Daniel J. Ryan, co-president and San Diego regional market director. "Our brand is built on trust — and that is reflected in our commitment to collaboration, consistency and reliability. Every detail of this generational campus has been intentionally crafted to enhance innovation, foster meaningful connection among a growing community of 3,000 professionals and empower them to create life-changing medicines to improve human health and quality of life."

Alexandria pioneered life science real estate with its founding and first acquisition in San Diego in 1994. Since acquiring its first Campus Point property in 2010, the company has been methodically aggregating, designing, entitling, developing and transforming assets to create an irreplicable Megacampus ecosystem with a strong and diverse tenant base, driving high-quality long-term cash flows. As of June 30, 2025, Campus Point consists of 1.3 million RSF in operation and is 98.8% occupied. With approximately 1.3 million RSF of additional future development and redevelopment opportunities, this Megacampus has the potential to encompass approximately 2.6 million RSF, representing an increase of 420% in its scale from initial acquisition. The campus is positioned to provide tenants with critical expansion space and an elevated amenity experience that enables the recruitment and retention of mission-critical talent to advance next-generation discoveries.

Campus Point provides an exceptional suite of existing wellness, event and food offerings, as well as continued activation through the addition of an array of talent-driven amenities. Among them are a versatile event and conference center, a members-only wellness center, a signature farm-to-table restaurant, a communal bodega and convenience retail. To further promote health and well-being, the campus will also feature recreational fields and pickleball courts, expansive green space, walking trails and a new organic garden. Campus Point's compelling location in the University Town Center submarket offers convenient access to the I-5 and I-805 freeways and the UCSD Health La Jolla trolley stop.

Construction of this development project, which is targeting 100% electrification and LEED Gold Core & Shell and Fitwel certifications, will commence in 2026 and is expected to be delivered in 2028. This ultra-efficient, high-performance laboratory facility prioritizes energy efficiency and water use reduction, as well as occupant health and wellness. Its distinctive design embraces natural light, optimizes shared space to promote connectivity and features an expansive terrace that serves as a central gathering place, seamlessly blending indoor and outdoor spaces.

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. With our founding in 1994, Alexandria pioneered the life science real estate niche. Alexandria is the preeminent and longest-tenured owner, operator and developer of collaborative Megacampus^™ ecosystems 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 June 30, 2025, Alexandria has a total market capitalization of $25.7 billion and an asset base in North America that includes 39.7 million RSF of operating properties and 4.4 million RSF of Class A/A+ properties undergoing construction and one committed near-term project expected to commence construction in the next year. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in highly dynamic and collaborative Megacampus environments that enhance our tenants' 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 Megacampus ecosystems on its tenants' ability to recruit and retain top talent and on its tenants' businesses in their pursuit of novel treatments to improve quality of life; LEED and healthy building certifications; and the features and amenities of the Campus Point by Alexandria Megacampus. 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 Alexandria Real Estate's (ARE) latest lease at Campus Point?

The lease encompasses 466,598 RSF for a build-to-suit research hub, representing the largest life science lease in Alexandria's 31-year history.

When will ARE's new Campus Point development project be completed?

Construction will begin in 2026 and is expected to be completed in 2028.

What is the current occupancy rate at ARE's Campus Point campus?

The Campus Point campus currently has a 98.8% occupancy rate across its 1.3 million RSF in operation.

How much can ARE's Campus Point property expand in the future?

Campus Point has potential to grow from 1.3 million RSF to approximately 2.6 million RSF, representing a 420% increase from initial acquisition.

What sustainability certifications is ARE targeting for the new Campus Point facility?

The facility is targeting 100% electrification and LEED Gold Core & Shell and Fitwel certifications.