Alexandria & Adaptive Boost Ties With New Lease For Seattle HQ
Zacks Investment Research | Aug 08, 2019 09:13PM ET
Alexandria Real Estate Equities, Inc. (NYSE:ARE) recently announced signing of a 12-year, full-building headquarter lease at 1165 Eastlake Avenue East by Adaptive Biotechnologies Corporation. The move has helped enhance and extend Alexandria’s long-term strategic relationship with this commercial-stage biotechnology company.
The 100,000 rentable square feet (RSF) office/laboratory development is in the heart of its Lake Union life-science cluster in Seattle. This ground-up development project at 1165 Eastlake is likely to be delivered in 2020, and Adaptive is expected to start occupying the new space in 2021.
Adaptive has an existing facility at 1551 Eastlake Avenue East that is also owned and operated by Alexandria. Therefore, signing lease for the new headquarter at 1165 Eastlake Avenue East helps the company to expand in close proximity.
Notably, Alexandria has played a crucial role in creating and growing Seattle’s Lake Union life-science cluster. The company’s expansion efforts in The Eastlake Life Science Campus include 1150 Eastlake Avenue East. This adjacent 260,000 RSF office/laboratory development project is also witnessing solid demand from a variety of innovative entities.
The pre-construction of 1150 Eastlake will likely begin in 2020 and its initial occupancy is expected to take place in 2022. The strong demand will likely help the company achieve significant pre-leasing of the building prior to its initial occupancy.
Alexandria’s properties are located in markets, characterized by high barriers to entry and exit, and a limited supply of available space, enabling it to enjoy higher occupancy rate. The above-mentioned lease also reflects the solid demand for the company’s properties. Moreover, adequate financial flexibility and a decent liquidity position poise the company well to pursue strategic development and redevelopment projects.
Recently, Alexandria reported its second-quarter 2019 results. The company reported funds from operations (FFO), as adjusted of $1.73 per share, beating the Zacks Consensus Estimate by a whisker. The figure also improved from the year-ago quarter’s reported tally of $1.64.
Continued strong leasing activity and rental rate growth helped the company excel in the first half of the year. In addition, solid external growth and strategic capital allocation to highly leased value-creation pipeline are encouraging.
Shares of this Zacks Rank #2 (Buy) company have gained 27%, year to date, compared with the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.