PASADENA, Calif., Jan. 24, 2017 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), a real estate investment trust uniquely focused on world-class collaborative science and technology campuses in AAA innovation cluster locations, announced a significant lease expansion and extension with the National Institutes of Health (NIH) for 92,000 rentable square feet (RSF) at 9 West Watkins Mill Road in Gaithersburg, Maryland. The NIH increases its total tenancy in Alexandria's Maryland cluster to 227,000 RSF with this strategic expansion.
Located in Maryland's dynamic life science ecosystem, Alexandria's 9 West Watkins will be anchored by the NIH's National Institute of Allergy and Infectious Diseases (NIAID). The facility will provide NIAID with state-of-the-art laboratory/office space to advance its mission to conduct and support research to better understand, treat and ultimately prevent infectious, immunologic and allergic diseases, including critical research on the Zika and Ebola viruses.
In addition to the NIH's new presence at 9 West Watkins, the agency has an existing 135,000 RSF on Alexandria's flagship Maryland campus at 9800 Medical Center Drive, in the heart of the Shady Grove Life Sciences Center in Rockville. The campus is home to multiple NIH institutes and centers, including the National Center for Advancing Translational Sciences (NCATS), an entity focused on catalyzing the development of novel, breakthrough discoveries in basic and translational research. The four-building Alexandria campus provides mission-critical facilities for NCATS, among other innovative life science entities, and offers opportunities for collaboration and growth. Alexandria currently holds entitlements for an additional 260,000 RSF at 9800 Medical Center Drive.
Maryland, one of the country's largest life science clusters, has emerged as a top vaccines and infectious diseases market, and also has a very strong focus on oncology and genetics. The life science cluster boasts a highly educated talent pool as well as proximity to leading federal government and regulatory institutions, including the NIH and the U.S. Food and Drug Administration (FDA). With the recent passage of the 21st Century Cures Act, signed into law in December 2016, the NIH and the FDA will receive $4.8 billion and $500 million, respectively, in additional funding over the next 10 years. This significant bipartisan legislation aims to accelerate the discovery, development and delivery of treatments and cures by investing in medical research. It also includes significant funds to tackle the ongoing opioid crisis, develop antibiotics for deadly drug-resistant microbes and improve the nation's mental health system. The new law is a prime example of continued government support for biomedical innovation, and it is a positive market driver in Maryland as well as in Alexandria's other innovation clusters.
Alexandria is the preeminent life science real estate owner and operator in Maryland, where it has executed new leases and lease renewals aggregating nearly 750,000 RSF during 2015 and 2016. With limited supply in the I-270 Corridor driving favorable rental rate trends, Alexandria is well positioned for growth in the region. As of September 30, 2016, Alexandria's Maryland asset base comprises approximately 2.1 million RSF, primarily centered in the Rockville and Gaithersburg submarkets, and 43% of its annual rental revenue comes from investment-grade tenants. Alexandria serves a range of high-quality and diverse tenants in Maryland, which include multinational pharmaceutical companies such as Sanofi and AstraZenenca; life science services and medical diagnostics companies, including Sigma-Aldrich and Canon U.S. Life Sciences; a number of growth- and early-stage companies, including Sanaria and Vtesse; as well as government and regulatory institutions such as the NIH and the U.S. Consumer Product Safety Commission.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE) is an urban office REIT uniquely focused on collaborative science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $13.0 billion and an asset base in North America of 24.5 million square feet as of September 30, 2016. The asset base in North America includes 18.8 million RSF of operating properties and development and redevelopment projects (under construction or pre-construction) and 5.7 million square feet of future ground-up development projects. Alexandria pioneered this niche in 1994 and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle Park. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban science and technology campuses that provide its innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity and success. For more information, please visit www.are.com.
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SOURCE Alexandria Real Estate Equities, Inc.