Landlords who lease to life science companies are enjoying an increase in profits as researchers race to develop COVID-19 vaccines and treatments, according to The Wall Street Journal.
The pandemic has proven pretty bleak for real estate companies who lease to museums, hotels and other hard-hit industries, and some retail landlords have reported that as many as 50 percent of their tenants have missed payments.
However, Alexandria Real Estate Equities, the country's largest life science real estate investment trust, garnered $1.1 billion via its new share offering, marking the company's largest equity offering and tightest pricing in the last 10 years, according to Founder and Chair Joel Marcus.
Alexandria's recent reports reveal that it leased more than 1 million square feet during the second quarter, instituting an 37 percent average rental rate increase. BioMed Realty, another large life sciences landlord, is following suit by creating a development pipeline slated to add 2.5 million square feet to its portfolio in Boston, Seattle and San Diego.
Areas without a large life science presence may also see hubs start to pop up. For example, Trammell Crow Co. signed a $250 million deal in June to develop a 16-story life science center in Chicago, where construction has already begun.
"One of the disruptive forces to office space was that we all went home and figured out how to use Zoom," real estate expert Steven Binswanger told The Wall Street Journal. "No one in their house has a lab set up."