Image courtesy of the town of Andover

In a sign of shifting strategy for the nation’s largest lab landlord, Alexandria Real Estate Equities leased an Andover property to a tech company that will primarily occupy it as office space for up to 400 employees.

Onto Innovation leased nearly 160,000 square feet at 3000 Minuteman Road in Andover for its new global headquarters. The 13-year lease has initial rent of $17 per square foot, according to an SEC filing.

By contrast, median asking lab rents in Boston suburbs still exceed $71 per square foot, according to a recent CBRE report.

In a recent conference call to discuss the company’s quarterly earnings statement, Alexandria Real Estate Equities executives said they were focusing on tech companies to pick up the slack in lab leasing demand at some properties.

Alexandria acquired the Andover property in 2021 for $32 million. It previously was the regional headquarters for Philips Healthcare.

The Onto Innovation lease commences in 2027 following tenant improvement work. The company, which reported 2025 revenues of $1 billion, is currently headquartered at 16 Jonspin Road in Wilmington and specializes in optical processes for the semiconductor industry.

Andover town meeting approved a tax increment financing agreement for the company’s relocation, which would bring 400 jobs to the property. The company estimated a $50 million investment in cleanrooms, new lobbies and office space.