Our industry is very collaborative, and campuses become very important places for people to go, he notes. Last October, life sciences developer Alexandria Real Estate Equities infamously pulled out of a partnership with industrial giant Prologis to develop a 600,000 I think that's the area that everybody is really focused on, and we have very limited exposure there. So, I guess the short answer is, I don't -- I haven't noticed anything. And so we ended up with this kind of standalone asset, which is a really good office asset. We have developed very broad and deep multi-cluster and multi-market relationships with most of the top companies in our industry.. This is such a natural part of what we do we think of it every day; it is not something we strain to do. The key areas that represent Alexandria's six bedrock social action pillars comprise disease and other threats to human health; hunger and food insecurity; deficiencies in support services for the military; the opioid epidemic; educational disparities; and the homelessness crisis. Alexandria paid $81 million to buy a 600,000 square-foot property at 421 Park Drive in the Fenway neighborhood of Boston for a mixed-use Landmark Center redevelopment project. It owns and manages more than 22 million square feet of lab and office space across the country, including 4.8 million in Cambridge. The fact that the defendants do no business in the United States remains unrebutted, she wrote in a 26-page decision. But just curious, from a geographic perspective, are there certain markets or submarkets where the normalization is a little bit more onerous? Those are all 100% pre-leased projects. That's helpful. Adding to the difficulty to execute in this environment is the increasing desperation of a number of office building owners, trying to raise cash to stay afloat by offering quality long-term leased assets with credit tenants at 6.5% to 7.5% cap rates. The government loves quotas, but thats not a way to operate a business. Alexandria has filed another claim against Steven Marcus in a California state court. We chose not to win the Britannia assets came for sale quite a number of years ago and in those days, HCP bought that, I think, almost $3 billion, we valued at about $1.7 billion. Yeah. Now our strong occupancy was in line with our expectations. Well, wait a second, the $4.2 million is in rental properties today, it's in operations, Tony. We dont even give it a second thought its part of our culture and DNA. We focus primarily on high barrier to entry markets and brand mega-campus offerings in those AAA high barrier to entry market locations and operational excellence enables us to continually mine our vast and deep tenant base to drive our leasing activity, which will likely lessen the impact of generic supply. Joel S. Marcus; Founder & Executive Chairman; Alexandria Real Estate Equities, Inc. Peter M. Moglia; CEO & Co-CIO; Alexandria Real Estate Equities, Inc. And I think we see in Maryland, it's still pretty good. Plus after having been in real estate for about eight years at that point, I could see a tremendous value in offering mission-critical facilities over commodity product. Concentrating on the fast-growing biotech market in San Diego, Alexandria acquired four buildings. Can you talk about the credit watch list today and just what that looks like as a percentage of your revenue versus, say, six months ago, how that number has changed? But Peter, you want to comment and Dan, you could comment as well. Many institutions want exposure, especially pension funds, life insurance companies, traditional investors, and even private equity, Marcus says. Export data to Excel for your own analysis. Serving growing pharmaceutical and biotech companies, Alexandria reported its highest-ever annual leasing volumein 2021 with 9.5 million square feet. Alexandrias already-strong performance was amplified by the pandemic when demand surged from new and existing tenants across its portfolio, as billions of dollars flooded into the research and development of a COVID-19 vaccine and other therapies to combat the virus. When we hire, everybody tries to check their egos at the door and we try to really have a mission-driven focus at all levels of the company. For example, Alexandria signed a massive, 462,000-square-foot lease with vaccine-maker Moderna at its Alexandria Center at One Kendall Square mega campus in Cambridge, Massachusetts. Thank you. So, I'm just trying to understand if in some of these future opportunities buckets, if there's some operating assets in those? But I suspect that maybe some of them are not retail. We just gave -- so you saw there was no changes in capped interest down in the details, obviously, if you -- we did on a number of projects review strategically what we wanted to do and a number of them were put on temporary hold. Good afternoon. For decades, Alexandria has been a leader in building sustainable campuses. Jacobs invested in the company with $5 million. The 1.2 million square feet leased in the first quarter is above our five-year pre-2021 average and is the 12th consecutive quarter with leasing volume above one million square feet. The result of all this is we have built a brand without here that puts us in a position where we don't rely on third parties to bring us tenants. So you were referring to the pipeline that's under construction, 5.5 million square feet, plus another $1.2 million near term. Alexandria is a publicly traded real estate investment trust that builds commercial properties and leases them to life science companies. With me today are Peter, Dean, Hallie and Dan. Markets never sleep, and neither does Bloomberg News. So that's maybe a way to frame it, but I think you'll be pretty impressed. But US District Court Judge Lucy H. Koh, of Californias Northern District, ruled her court has no jurisdiction because Steven Marcuss companies operate strictly in Europe and Steven lives in London. They're one-off. Biotech is also not reliant on venture debt to the same extent as the tech industry. This is one of two buildings that were undergoing redevelopment last quarter, one building, aggregating 131,000 rentable square feet is currently 36% pre-leased and undergoing redevelopment. Entitlements are important. Since life science demand exploded, new developers and property owners want a piece of the action. So that ties to the $610 million for others of incremental net operating income. In 1996, Marcus founded the companys venture capital arm, Alexandria Venture Investments, to provide strategic investment capital to innovative life science and technology entities developing breakthrough therapies and technologies. ", "I am deeply honored and incredibly moved to receive this honor from the 9/11 Memorial & Museum, especially as we commemorate the 20th anniversary of the 9/11 attacks," said Mr. Marcus. Additionally, Alexandria earned the first-ever Fitwel Life Science certification for its leadership in prioritizing tenant health and wellness and was named a 2021 Global Real Estate Sustainability Benchmark (GRESB) Global Sector Leader. The pandemic helped supercharge a demand story that existed pre-COVID. It also highlighted the resiliency in terms of the essentialness of the underlying real estate, he says. WebJoel S. Marcus, JD, CPA, is the Executive Chairman and Founder of Alexandria Real Estate Equities, Inc. (NYSE: ARE), the urban office REIT that pioneered life science real And then just on the transaction market, I know you touched on cap rates, maybe up about 100 basis points in each asset, very different, though. Its part of our DNA. Please go ahead. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Good day, and welcome to the Alexandria Real Estate Equities First Quarter 2023 Conference Call. In the first quarter, Alexandria inked a 427,000-square-foot lease with Bristol Myers Squibb, its largest tenant, (by annual rental revenue) for the development of that companys newest, cutting-edge research hub focused on cancer as well as immune-mediated and neurodegenerative diseases at the Alexandria Point mega campus inSan Diego. The Alexandria Summit convenes a diverse group of visionary partners and key stakeholders from the pharmaceutical, biotechnology, agribusiness, technology, medical, academic, venture capital, private equity, philanthropic, patient advocacy, and government communities to address the most critical challenges in global healthcare, agriculture, and the environment. The legal war between Joel Marcus, 72, and his son may not be over, however. The next question comes from Tom Catherwood with BTIG. Nareitis the worldwide representative voice for REITs and publicly traded real estate companies with an interest in U.S. real estate and capital markets. They're just not going forward with some of them, which is contributing to the reduction in demand. SOURCE Alexandria Real Estate Equities, Inc. Cision Distribution 888-776-0942 Many cities want to become the next emerging life science market, but obstacles exist. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Of course, this is also not work that can be done from home. So, we've got good activity. For our own private biotech tenants in the days following the collapse, we had conversations with over 100 companies. They were the first to focus on life science real estate and really dedicate the bulk of their business to it. We will now begin the question-and-answer session. What happens on these campuses is intertwined with our other three verticals. So that's just two examples. Paula Schwartz - Investor Relations. Yeah. When the world is in a tumultuous situation of global conflict, economic stress, and rising interest rates, those are a series of things that investors worry about, Rodgers says. I said, Well, in 10 or 15 years, maybe we could be a $1 billion company. And lo and behold, we passed $44 billion in enterprise value at the end of 2021., In May, the company celebrated the 25th anniversary of its IPO. Even worse is the availability of large transformers provided by the utility companies, which can take as long as three years now to get. However, Alexandria has an immense advantage with its long-term relationships with large, industry-leading companies, many of which are revolutionizing the biotech sector. It's slower than it has been because obviously, '20 and '21 were peak times and obviously COVID dollars we're heavily focused on that market, but we're still seeing pretty decent activity that I would say, matches our historical numbers. Rooted in its mission to advance human health, improve nutrition and enhance the quality of people's lives, Alexandria partners with leading local and national non-profit organizations, medical research institutions and municipalities to make a tangible positive impact in its clusters and communities. WebMarcus co-founded Alexandria in 1994 as a garage startup with $19 million in Series A capital and, as Chief Executive Officer from March 1997 to April 2018, has led its growth