[ad_1]
Veteran life sciences real estate developer Alexandria Real Estate Equities has secured a pharmaceutical giant as the anchor tenant for a newly constructed building in Sorrento Mesa.
The company announced earlier this week that an unnamed but highly creditworthy tenant has signed a 10-year lease for 127,382 square feet of space at 10075 Barnes Canyon Road. The single-building project, nearing completion, is part of Alexandria’s sprawling 43-acre SD Tech campus, located east of Interstate 805 and north of Mira Mesa Boulevard.
The Barnes Canyon project’s anchor tenant is listed as a “top 20 pharmaceutical company,” expanding its San Diego footprint by about 53 percent, according to a news release issued by Alexandria.
The lease represents just over half of the 253,079-square-foot building at 10075 Barnes Canyon Road. Alexandria Co-President Dan Ryan said the project is currently 70 percent leased, with three more tenants expected to move in later this year.
Founded in 1994, Pasadena-based Alexandria operates 42.2 million square feet of lab and office space across the nation’s top life science clusters, including Boston, the Bay Area and Seattle. Alexandria, a publicly traded real estate investment trust, reported total assets of $37.7 billion as of the end of March.
In San Diego, the life sciences developer’s portfolio includes 7.8 million square feet of space, more than 95% of which is occupied. The holdings are concentrated in Torrey Pines, University City and Sorrento Mesa. The company is currently developing an additional 1.2 million square feet of space in the San Diego market.
The Barnes Canyon lease is one of the largest life sciences real estate transactions to have taken place in recent months, as overall leasing activity has cooled significantly after frenetic demand during the early stages of the pandemic. In March, Pfizer’s 230,000-square-foot lease in Torrey View marked the county’s largest new biotech-related lease in more than a year.
“It feels like the market is kind of picking up in terms of tenant space, interest and spending. Demand is coming back,” Ryan told the Union-Tribune. “We and other landlords are starting to do some transactions. We’re just dealing with more supply than ever before.”
More than 16% of lab spaces in San Diego’s biotech core are vacant and about 26% of space is available for lease, according to data from real estate research firm CoStar. The established core is generally defined by its proximity to the University of California, San Diego, and includes University City, Sorrento Mesa, Torrey Pines and the corridor along Interstate 56.
“Several big commitments have been signed among life sciences companies over the past few months, with companies working to develop new products in San Diego’s biotech core region,” said Joshua Orr, senior director of market analysis at CoStar. “While this may not be a huge change in terms of growing biotech demand, as construction of new lab space continues, it will help relieve some of the supply pressures the region is facing.”
The lease at 10075 Burns Canyon Road, an industrial hub, is also evidence that pharmaceutical companies continue to turn their backs on downtown San Diego, where developers IQHQ and Stockdale Capital Partners hope to establish a new cluster.
“We’ve always thought (downtown) was a very flawed concept,” Ryan said. “The geographic average of where employees are located is really near (State Highway) 56 and Carmel Mountain.”
The SD Tech campus in Alexandria is 50% owned by CalSTRS, the teacher pension fund.
[ad_2]
Source link
