Introducing BioDirt

This quarterly newsletter will inform you of new lab space opportunities and share relevant news and insights.

Let’s get to it!

REAL ESTATE HIGHLIGHTS

Alexandria Real Estate Equities, one of the nation’s largest biotech property owners, is reducing planned construction spending by $250 million this year because of lingering supply shortages and high material and labor costs. The Pasadena, California-based real estate investment trust is postponing some projects that had been classified as under construction but hadn’t moved forward because of delays in getting construction materials or cost overruns exacerbated by shortages. (source: Costar)

Context: Nationally, only a few developers play in the lab space game. Alexandria Real Estate Equities is the largest player, and they are HQ’ed right here in Pasadena. Despite their LA HQ, they own only a few buildings here, and they are in the Conejo Valley. The recent news of their downstroke in capital expenditures doesn’t help the LA lab space market, but my estimate is that it is a temporary stance to appease Wall Street as biotech equities recover from their 2022 wipeout.

TOP 5 AVAILABLE SPACES IN THE LA MARKET

The market is tight, but these five spaces - arranged from biggest to smallest - offer something for a variety of biotech business needs.

1525 & 1535 Rancho Conejo Blvd, Thousand Oaks, CA

InstilBio's leaving behind a fully built out lab and office. The owner is Alan Glass, LA's version of Alexandria. He's a pro, and the Conejo Valley is brimming with demand--this space will be leased before you click Subscribe!

Spread out over two buildings and 14.15 acres, the HATCHcampus in Thousand Oaks boasts a total of 160,980 SF, with 100,000 SF of that space designed and built for R&D.

18408-18412 W Oxnard St, Tarzana, CA

IInstilBio (Nas: TIL) made big news when they announced plans to bail from Los Angeles, which will include the sale of their recently completed cGMP lab and manufacturing facility in Tarzana (yes, the middle of the San Fernando Valley). At some point, an investor or biotech company will drool over this brand-new, ready-to-go 128,000 SF facility, but the timing of the sale could not be worse.

120 Via Merida, Thousand Oaks, CA

This former corporate headquarters for Anthem Blue Cross was most recently used as a filming location by the film and television industry. In March, Gray Matter, the life sciences initiative of Graymark Capital, purchased the project and set up a phased conversion plan to transform the 99,000 SF building to a 60% labs, 40% office mix.

This commitment to building a lab “on spec” is risky and daring, but by the time it is done, demand will be back.

111 W Lemon Ave, Monrovia, CA

Recently vacated by Xencor, this fully built-out turn-key wet lab and office space is 49,924 SF, equally divided over two floors. Located at the center of Old Town Monrovia and on the market at $4.25/PSF/MO, multiple tenants are bidding for the space.

129 N Hill Ave, Pasadena, CA

The Alexandria Innovation Center, former home of Terray Therapeutics’ wet lab, contains 3,000 SF of move-in ready space. Alexandria Real Estate Equities owns the building.

LA COUNTY BIOTECH INCUBATORS

For your convenience, some of the best wet lab incubators in Southern California.

Cal State LA BioSpace
https://labiospace.calstatela.edu/
Hertzberg-Davis Forensic Science Center
5151 State University Dr, Los Angeles, CA 90032

The Lundquist Institute
https://lundquist.org/
1124 W Carson St, Torrance, CA 90502
(Located in Harbor-UCLA Medical Center)

MAGNIFY at CNSI (California NanoSystems Institute)
https://magnify.cnsi.ucla.edu/magnifyteam/
570 Westwood Plaza
Building 114 | Mail Code: 722710, Los Angeles, CA 90095

ScaleHealth
https://scalehealth.com/startups/
3415 S Sepulveda Blvd FL 10, Los Angeles, CA 90034

Terasaki Institute for Innovation
https://terasaki.org/institute/innovating/innovation.html 
3 locations:
1018 Westwood Blvd, Los Angeles, CA 90024
11570 W. Olympic Blvd, Los Angeles, CA 90064
21100 Erwin St, Los Angeles, CA 91367

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And, as always, we're here to help you with your real estate needs.

Ted Simpson
Founder and CEO
Commercial Real Estate Advisors
(c) +1 424.241.4795
(e) [email protected]
CA DRE License #01097189