Land & Buildings Issues White Paper Detailing Impact of Work From Home Trend On Life Science Office Market

Rhea-AI Summary

Employee attendance in life science buildings with a combination of laboratory and office space is down 50% compared to pre-pandemic levels, according to an analysis by Land & Buildings. This could negatively affect shares of Alexandria Real Estate Equities, potentially leading to a 30-40% downside from current levels.

Positive

• Employee attendance in life science buildings down 50% compared to pre-pandemic levels

Negative

• Shares of Alexandria Real Estate Equities could see a 30-40% downside from current levels

Analysis Shows Employee Attendance in Life Science Buildings with a Combination of Laboratory and Office Space Down 50% Compared to Pre-Pandemic Levels – On Par With Traditional Office Buildings

Following an In-Depth Analysis of Alexandria Real Estate Equities’ Portfolio, Land & Buildings Predicts Shares Could See ~30-40% Downside From Current Levels

STAMFORD, Conn.--(BUSINESS WIRE)-- Land & Buildings Investment Management, LLC (together with its affiliates, “Land & Buildings”, “us” or “we”), today issued a white paper titled The Work From Home Hurricane Has Hit Life Science Offices, detailing the impact of COVID-19 on the life science office market. Specifically, Land & Buildings’ analysis focused on life science REIT company Alexandria Real Estate Equities, Inc. (NYSE: ARE).

With typically 50% laboratory space and 50% office space, many observers have considered companies with office exposure in the life science sector as a safe haven from the impact of the work-from-home phenomenon. Unfortunately, Land & Buildings’ analysis starkly contradicts this view. The full white paper can be found here.

Land & Buildings’ study concludes that if the path for life science follows traditional office, as it appears to be doing, Land & Buildings estimates ARE could trade at valuations similar to traditional coastal office REITs – which suggests an approximate 30-40% downside from current levels.

Previously, in May 2020, Land & Buildings published a white paper titled The New York Office Market is Facing an Existential Hurricane.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230616782160/en/

Media

Longacre Square Partners

Dan Zacchei

dzacchei@longacresquare.com

Source: LAND & BUILDINGS INVESTMENT MANAGEMENT, LLC

FAQ

What is the impact of COVID-19 on the life science office market?

Employee attendance in life science buildings with a combination of laboratory and office space is down 50% compared to pre-pandemic levels.

What company's analysis was the focus of Land & Buildings' study?

The analysis focused on Alexandria Real Estate Equities, Inc. (NYSE: ARE).

What is the potential downside for shares of Alexandria Real Estate Equities?

Shares could see a 30-40% downside from current levels.