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SOUTH SAN FRANCISCO-Genentech has inked a 12-year lease for a four-story, 121,000-sf building that will be developed here by Alexandria Real Estate Equities Inc. The building, to be located near its headquarters at 1 DNA Way, is scheduled for delivery before the end of the year.

Genentech, with a market capitalization of approximately $85 billion, is the world’s top biotech firm. Alexandria is a major player in the life science real estate market, with 9.3 million sf of office and lab space in 141 properties, including 1.3 million sf in the Bay Area.

The exact location and completion date for the planned new Genentech building was not made clear by Alexandria, which did not return a phone call seeking comment. The negotiated lease rate for the building also was unavailable, but according to Alexandria’s most recent annual report the weighted average triple-net lease rate in its portfolio is $32.94 per sf.

The Genentech transaction represents one of five ground-up development projects totaling 462,000 sf that Alexandria had under construction as of March 31. The space is 75% preleased. All told, Alexandria has 900,000 sf of ground-up predevelopment projects in progress in the South San Francisco, all clustered around Genentech and Amgen, and approximately 2.5 million sf in Mission Bay clustered around the University of California at San Francisco.

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