Land owners in San Francisco are once again striking it rich, but this time it’s developers with entitled land who are sitting on the gold mines.
How hot is the office development market in San Francisco?
Hot enough that Alexandria Real Estate Equities Inc. — one of only two dedicated life science REITs — just announced it has signed a 150,000 square foot long-term lease with Pinterest.
Pinterest will occupy the entire 505 Brannan Street building which is part of Alexandria’s Mission Bay campus. Construction of the facility is slated to begin by 2016, with completion slated for early in 2017.
“We welcome Pinterest to its new home in our SoMa/Mission Bay innovation cluster. 505 Brannan Street represents another meaningful extension and integration of Alexandria’s Mission Bay campus into the SoMa technology district, reinforcing the intersection of two extremely innovative locations,” said Joel Marcus, chairman, chief executive officer and founder of Alexandria Real Estate.
Alexandria – San Francisco Innovation Clusters
Most of Alexandria’s tenants are recognizable academic, research and pharmaceutical names, such as: Bayer AG, Celgene, National Multiple Sclerosis Society and UCSF.
“Mission Bay is a hotbed of innovation in the U.S. and key to our decision to co-locate our researchers in this life sciences community. We expect this new focus on U.S. research collaboration to enhance Bayer’s pipeline which features a successful combination of internal excellence with highly partnered approaches in research and development and commercialization,” said Dr. Andreas Busch, Head of Global Drug Discovery of Bayer’s Bayer HealthCare Pharmaceuticals.
Read more: Benzinga Stick Another ‘Pin’ Into San Francisco’s Red-Hot Office Development Map