Alexandria Real Estate Equities, Inc. ARE recently clinched a renewal and 10-year lease extension with Takeda Pharmaceutical, a longstanding credit tenant, for 222,925 rentable square feet at 75/125 Binney Street at Kendall Square in the Cambridge submarket.

Being a significant early renewal, the lease extension will run through Mar 31, 2040. This move will ensure steady rental revenues from this property for the long term.

Takeda is an R&D-driven & patient-focused pharmaceutical company, providing highly innovative medicines across therapeutic areas. Its long-term commitment to the Alexandria Center at Kendall Square mega campus is demonstrated by its early renewal, which also emphasizes how crucial Alexandria's Labspace infrastructure is.

Cambridge's Kendall Square boasts a dense concentration of innovative and highly diversified life science companies, leading universities and renowned research institutions and a rich life science talent pool in the nation.

In 1999, Alexandria made its entry into the Cambridge submarket. Since then, ARE's footprint has expanded to three premier mega campuses, Alexandria Technology Square, the Alexandria Center at One Kendall Square and the Alexandria Center at Kendall Square, totaling more than 5.4 million rentable square feet in operation. Known as "the most innovative square mile on the planet," Kendall Square in Cambridge is home to these mega campuses.

As of Dec 31, 2023, the Alexandria Center at Kendall Square mega campus had 2.8 million rentable square-foot of operating properties and approximately 216,000 rentable square-foot potential future development. This strategic location is positioned to meet the need for space for some of the most innovative life science companies in the world, like Takeda, as well as provide a path for future growth.

Under the terms of the lease extension at the LEED Gold certified research facility, Takeda and Alexandria will work together to improve the building's sustainability and environmental performance through a range of targeted initiatives, such as encouraging occupant health and wellness, prioritizing energy efficiency and reducing water usage.

After successfully completing the development of 75/125 Binney Street in 2015, Alexandria sold a 60% partial interest stake in the property to an institutional investor in 2019 for $438 million, or $1,880 per rentable square foot. The partial interest sale supported the company's goal to provide its stockholders with long-term value, representing $202.2 million in excess of book value and a 4.3% cash capitalization rate.