X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO-Two months after revealing a deal was in the works, Pfizer has landed a tenant for an under-construction, 102,283-square-foot R&D building in Mission Bay that it pre-leased long-term but will never occupy. Nektar Therapeutics said Friday will relocate its corporate headquarters and R&D operations to the 201,000-square-foot building from San Carlos, CA, in the second half of 2010.

Owned by Alexandria Real Estate Equities, the building is known by its street address, 455 Mission Bay. Nektar says in an SEC filing that it will pay no rent for the first four years of its 9.5-year sublease commitment for upper west-wing floors the building. After that, it says the starting rent will be approximately $35 per square foot, triple net, which is well below the going biotech rate of $48 per square foot. The rent will top out at $41 per square foot per month.

Pfizer inked a 15-year pre-lease for the building in mid-2008 [http://www.globest.com/news/1213_1215/sanfrancisco/172866-1.html] but changed its mind in mid-2009 [http:///news/1446_1446/sanfrancisco/179676-1.html], shortly after acquiring Madison, NJ-based Wyeth Pharmaceuticals, a purchase that included a global real estate portfolio. Pfizer instead is keeping its R&D operation in South San Francisco at 259 East Grand Ave., the home of Rinat Neuroscience, a company it acquired in 2006.

As it was to do for Pfizer, Alexandria will fork over $15 million for tenant improvements. Nektar will spend an additional $15 million completing the build out, which will include administrative office space as well as an R&D center with biology, chemistry, pharmacology and clinical development capabilities.

Nektar says the Mission Bay facility will complement the company’s research operations in Huntsville, AL, and Hyderabad, India. The company currently is developing pain relief, cancer and HIV drugs.

Mission Bay is slated for more than four million square feet of R&D space, about 2.7 million square feet of which has been built, is under construction or permitted. The total does not include the 43-acre, UCSF campus, which is slated for 2.7 million square feet and is about 60% built out.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.