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SAN FRANCISCO-The 76% availability rate at the 1.4 million-square-foot, 10 building former Sun Microsystems campus in Newark hasn’t budged for 10 months now. BioMed Realty Trust paid $216 million or $154 per square foot for the campus in mid 2006 and Sun fully vacated the premised one year later in mid-2007. BioMed, which has since spent tens of millions of dollars repositioning the property as Pacific Research Center, a life science campus, estimates its eventual cost basis in the property at closer to $300 per square foot.

BioMed landed 336,500 square feet of leasing for Pacific Research Center between December 2007 and May 2008, including a long-term 140,000-square-foot lease for the only manufacturing space on the campus, but nothing has been signed since that time. At the start of 2008, shortly after Risk Management Solutions signed a 12-year headquarters lease for 103,000 square feet, BioMed CFO Kent Griffen told GlobeSt.com he wanted to see approximately 500,000 square feet of leasing by the end of the year and have it fully leased up by 2010.

Neither Griffen nor the brokers with the leasing assignment could be reached Friday for comment.

The rest of BioMed’s regional portfolio, 13 buildings totaling 1.26 million square feet, very well leased, with no lease expirations in 2009 and only 165,000 square feet in 2010. Aside from two repositioned properties totaling approximately 220,000 square feet that are still in their lease-up phase, all but one of the other 11 buildings is 100% leased, and the one that is not is 96.8% leased. The company’s average rental rate in the Bay Area is $23.35 per square foot per year.

Healthcare Property Investors, an even larger publicly traded player in the regional life science real estate market reported this month a year-end 89.9% occupancy rate for its 70-building, 4.16 million-square-foot Bay Area life science portfolio, which totals 5.6 million and includes properties in San Diego and Utah. HCPI’s life sciences lease expirations in 2009 total 464,000 square feet, or 1.2% of the company’s annualized revenues. The company says it has addressed 36% of the expirations at mark-to-market increase in rents of 32%. While the company has some exposure with South San Francisco-based Genentech and San Diego-based Amgen generating more than 30% of its annualized revenue it is nonetheless anticipating 2009 same property cash NOI between 12% and 12.5%.

Swiss drug giant Roche, which controls 56% of Genentech, recently launched a hostile bid to acquire the rest of the company. Roche has said that Genentech would remain at its South San Francisco location as an independent unit within Roche, and that Roche’s US drug-development activities would be moved to Genentech’s site from Nutley, NJ. While no specific deal currently involves Amgen, the pharmaceutical and biotech industries are consolidating and Amgen, which has drugs on the market and in its pipeline, is an M&A candidate.

Amgen most recently took down two buildings totaling 250,000 square feet at HCPI’s Oyster Point II life-science campus. Amgen signed a 15-year pre lease for the buildings prior to completion but changed its plans last year as part of a company-wide cost reduction initiative. It sought to sublease the space but never did.

In its fourth quarter conference call with analysts, HCPI says cash rent recently commenced for the buildings, which are now shell complete, while tenant improvements remain to be completed. Rent recognition under GAAP will be deferred until related tenant improvements are complete. HCPI also has completed Oyster Point 2 building C comprising 78,000 square feet in the fourth quarter and continues to pursue tenants for the space.

In addition to the Oyster Point buildings HCPI delivered three buildings totaling 230,000 square feet at its East Grand development, which helped push vacancy in its portfolio to 91.1% from 89.1% at the end of the third quarter. HCPI says it has an additional 200,000 square feet of life science redevelopment projects in the pipeline for delivery in 2009 and 2010.

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