Alexandria Announces Long-Term Lease at San Carlos Mega Campus

Alexandria Real Estate Equities, Inc. ARE announced the execution of a 10-year lease with Vaxcyte, Inc., a clinical-stage biopharmaceutical company. The lease spans over 258,581 rentable square feet (RSF) at 825 Industrial Road on the Alexandria Center for Life Science – San Carlos mega campus in the San Francisco Bay Area. The lease encompasses new space along with the extension of existing space.Vaxcyte has been a tenant of Alexandria since the commencement of operations at Alexandria Center for Life Science – San Carlos in 2021. The extension of the lease solidifies Alexandria’s position as a top-notch contender for life science innovations.The mega campus at San Carlos is highly preferred by its tenants as it offers a unique range of amenities to attract tenants and retain and motivate top talent. These amenities include premier meeting and conference areas, a vast courtyard, an exquisite eatery and coffee bar, and a health and wellness center. The mega campus is equipped with extensive options for future development alongside the Labspace infrastructure in a prime location. It provides easy access to Highway 101 and is within walking distance of Caltrain, boutique shops and restaurants, making it highly desirable for life science companies.With the securing of this anchor lease, the mega campus development in San Carlos with 739,157 RSF in operation is now 97.4% occupied. With around 1.4 million RSF of future development opportunities as of Sept. 30, 2024, the development is highly appealing to life science and technology companies seeking tenancy.Alexandria's irreplicable asset base in the San Francisco Bay Area, as of Sept. 30, 2024, comprised 8.5 million RSF, with 7.8 million RSF currently in operation that is 94.1% occupied.Alexandria caters to a diversified tenant base comprising high-quality companies, ranging from multinational pharmaceutical companies, public and private biotechnology companies, manufacturers of complex medicines and top-tier investment-grade companies and institutions, as well as technology entities.Image Source: ARE SupplementalARE’s total leasing activity aggregated 1.5 million RSF of space in the third quarter of 2024, up 48% from the previous four-quarter average of 1.0 million RSF,reflecting healthy demand for its high-quality office/laboratory space. As of Sept. 30, 2024, mega campuses accounted for 76% of the annual rental revenues in effect, and investment-grade or publicly traded large-cap tenants accounted for 53% of the annual rental revenues in effect.Image Source: ARE SupplementalAlexandria’s operational efficiency has led to consistently high occupancy at its properties. As of Sept. 30, 2024, the occupancy of Alexandria’s operating properties in North America remained high at 94.7%, up 10 basis points (bps) from the prior quarter and 100 bps from the year-ago quarter.Over the past year, shares of this Zacks Rank #3 (Hold) company have risen 1.2% compared with the industry's upside of 17.2%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the broader REIT sector are Iron Mountain IRM and Cousins Properties CUZ, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Iron Mountain’s 2024 FFO per share is now pegged at $4.49, which indicates growth of 9% year over year.The Zacks Consensus Estimate for Cousins Properties’ current-year FFO per share is now pegged at $2.68, which calls for growth of 2.3% year over year.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Iron Mountain Incorporated (IRM): Free Stock Analysis Report Cousins Properties Incorporated (CUZ): Free Stock Analysis Report Alexandria Real Estate Equities, Inc. (ARE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks