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100 Technology Square
Novartis AG has extended its leases for more than 300,000 square feet of office and lab space at Alexandria Real Estate Equities’ Technology Square campus in Cambridge.
The transactions include a 10-year extension for 255,441 square feet of office and lab space at 100 Technology Square, which was the first building occupied by the Swiss drug maker in Massachusetts when it opened its local research center in 2002. That lease had been scheduled to expire in April 2018.
Another 47,185 square feet of office space was renewed for 10 years at 200 Technology Square. That lease had been scheduled to expire in September.
The extensions include rent increases of 42 and 20 percent, Alexandria executives said during a conference call Tuesday.
“We’re near all-time highs in overall occupancy and demands have stayed very strong. You can just see by Novartis re-upping a year ahead of time or more,” Alexandria CEO Joel Marcus said, according to a transcript by Seeking Alpha.
Novartis now occupies all or portions of 10 buildings in Cambridge as part of its global drug discovery headquarters, the Novartis Institutes for BioMedical Research.
Newmark Grubb Knight Frank’s Mark Winters represented Novartis in the Tech Square transactions.
On Monday, Pasadena, California-based Alexandria reported its funds from operations of $115.5 million during the fourth quarter.
During the quarter, Alexandria completed its $725 million acquisition of the 644,771-square-foot One Kendall Square complex from DivcoWest. That complex is 97 percent occupied with average in-place rents of $47 per square foot, but 55 percent of the leases are set to expire through 2019. Some of that space will be converted to higher-rent lab space, Alexandria said.
Alexandria also plans to break ground soon on a 172,500-square-foot office and lab building at the property.
Alexandria owns nearly 6.3 million square feet of commercial real estate at 51 properties in Greater Boston generating over $323 million in annual rental revenue. The Greater Boston portfolio which comprises 41 percent of Alexandria’s overall holdings is more than 96 percent occupied.
