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Alexandria Real Estate posts $73.7M Q2 loss amid life sciences glut
In Q2, rent for labs fell 5.3% year over year to $64 per square foot and vacancy rose to 24.3%, pressuring occupancy to 86.9%.
Alexandria Real Estate Equities reported a second-quarter net loss of $73.7 million as its life sciences real estate business continues to struggle with a prolonged supply glut, according to Bisnow. The REIT said net operating income fell 10% and that property sales have faced delays. The company linked the weak leasing environment to a disconnect between improving conditions in the life sciences sector and landlord demand on the ground, with Alexandria Chairman Joel Marcus saying the market has “decoupled from demand on the ground.” Since Tuesday’s market open, Alexandria shares were down roughly 4% to just under $49, keeping the stock above its $40 year-to-date low reached in April. Operational metrics showed ongoing pressure. Based on Cushman & Wakefield’s Q2 life sciences report, lab rent declined 5.3% year over year to $64 per square foot, and vacancy increased to 24.3%. Alexandria also reported rental rates down 0.7% and occupancy slipping to 86.9% from 91.7% in Q1 2025. Leasing activity was mixed despite some improvement in volume. Alexandria said Q2 leasing volume slightly topped 1 million square feet, up 60% from the prior quarter, but it also reported that rental growth was not restored. The company noted that just 6% of signed leases involved public biotech firms, while about 40% came from medical product and device companies and roughly 30% from advanced tech firms, with Greater Boston properties such as 3000 Minuteman Road and 311 Arsenal St included in recent tech deals.