CAMBRIDGE, MA– Alexandria Real Estate Equities, Inc. (NYSE: ARE), an urban office REIT focused on life science and technology campuses, announced that it has completed 100% pre-leasing of 100 Binney Street, a ground-up development project consisting of 431,000 rentable square feet of office/laboratory space, in advance of its delivery in the fourth quarter of this year.
In August 2017, Alexandria executed leases aggregating 175,000 RSF, or 41% of the project, including a three-floor lease for 130,000 RSF with Facebook, one of the world’s largest technology-related companies. The tenants at 100 Binney Street have been carefully curated to include Bristol-Myers Squibb Company with 208,000 RSF; Facebook with 130,000 RSF; and Foghorn Therapeutics, Sigilon Therapeutics, Tango Therapeutics and TCR2 Therapeutics, four high-quality, venture-backed entrepreneurial life science companies, with an aggregate of 90,000 RSF.
These leading-edge companies further enhance the diverse and collaborative ecosystem of world-class life science and technology companies that Alexandria has cultivated in its mega campus along the Binney Street corridor, the company said in a statement.
“Robust demand for Class A office/laboratory space on Alexandria’s flagship campuses in Cambridge, in part, continues to drive our strong internal growth,” said Joel S. Marcus, chairman, chief executive officer and founder of Alexandria Real Estate Equities, Inc. “More than a decade ago, in Cambridge, we pioneered the mega trend of developing and amenitizing urban cluster campuses. Our strategic assemblage, entitlement and development of more than 2 million SF along the Binney Street corridor laid the groundwork for what has become our second mega campus in Cambridge. Additionally, our acquisition of more than 1 million RSF at Technology Square in 2006 was crucial to the substantial redevelopment of Alexandria Technology Square®, our inaugural mega campus in Cambridge. Through the effective execution of our urban campus vision, we have been at the vanguard of creating this vibrant ecosystem, building a dominant and still growing footprint in one of the nation’s most innovative clusters.”
With strong confidence in the Cambridge market, Alexandria is focused on the pre-leasing and ground-up development of 399 Binney Street, its new 164,000 RSF Class A office/laboratory property at the Alexandria Center® at One Kendall Square, a 645,000 RSF, nine-building life science and technology campus that the company strategically acquired in November 2016 as its third mega campus in Cambridge. Located in the most sought-after area in Cambridge, Alexandria’s 399 Binney Street is experiencing exceptionally strong demand, with multiple proposals received from innovative life science and technology companies that account for nearly the entire building. Vertical construction of 399 Binney Street will commence soon, and the building is expected to be fully pre-leased well in advance of its delivery in 4Q18.
Alexandria has also begun planning for enhancements at its Alexandria Center at One Kendall Square campus. The enhancements include reenvisioned indoor and outdoor collaboration spaces, as well as new and upgraded ground-floor retail space and world-class restaurants and eateries, to provide tenants and visitors with a dramatically improved on-campus experience.
Alexandria’s deep expertise in entitlement, design, construction and development, as well as its highly credible long-term relationships with key local government agencies, has enabled the company to successfully own and operate 6.3 million RSF in Greater Boston, of which approximately 5.0 million RSF (including development and redevelopment projects) is in the Cambridge market. As of June 30, 2017, Alexandria’s Greater Boston properties were 96% leased, including 99% leased in Cambridge. Additionally, Alexandria owns key future development sites in Greater Boston that support the development and redevelopment of new Class A properties aggregating 700,000 SF.