Alexandria Real Estate Equities, Inc. Announces Long-Term Lease with Leading Global Commercial-Stage Oncology Company, Onyx

 Alexandria Real Estate Equities, Inc. Announces Long-Term Lease with Leading
Global Commercial-Stage Oncology Company, Onyx Pharmaceuticals, Inc., for New
          Build-to-Suit Facility in South San Francisco, California

PR Newswire

PASADENA, Calif., March 4, 2013

PASADENA, Calif., March 4, 2013 /PRNewswire/ --Alexandria Real Estate
Equities, Inc. (NYSE: ARE), the largest and leading owner, operator, and
developer of high-quality, sustainable real estate for the broad and diverse
life science industry, is pleased to announce that Onyx Pharmaceuticals, Inc.,
a global commercial-stage oncology company, has executed a 10-year lease with
an affiliate of Alexandria for a new, single tenant, ground-up development at
269 East Grand Avenue in South San Francisco. This new lease transaction
affirms Onyx's continued growth into a successful, commercial-stage
biotechnology company, as well as Alexandria's longstanding reputation as the
best-in-class provider of high-quality real estate and related solutions for
the world's leading life science companies.

"Onyx represents a significant new second generation of biotechnology
companies that are commercializing breakthrough, high-impact products that
will save lives, manage disease, and reduce the economic burden of disease on
society," said Joel S. Marcus, Chairman, Chief Executive Officer and Founder
of Alexandria. "We are honored that Onyx and its world-class team have chosen
a long-term partnership with Alexandria, and we look forward to their
continued growth and success in the years to come."

The ground-up development of this facility is consistent with Alexandria's
strategy to transform non-income-producing land into income-producing assets
with significant pre-leasing from high-quality client tenants. As an
investment-grade REIT, Alexandria also intends to fund this development on a
leverage-neutral basis. Alexandria expects to deliver the 269 East Grand
Avenue in the fourth quarter of 2014 and is currently negotiating a secured
construction loan to provide funding for this project.

Alexandria is the dominant life science owner and operator in the San
Francisco Bay Area cluster with approximately 2.9 million rentable square feet
(including development and redevelopment assets) in the Mission Bay, South San
Francisco, and Peninsula submarkets. In Alexandria's South San Francisco
submarket, from the first quarter of 2008 through the third quarter of 2012,
Alexandria captured approximately 844,000 rentable square feet of new leases
–approximately 724,000 rentable square feet more than the next highest
laboratory landlord. Alexandria currently serves approximately 25 client
tenants in the South San Francisco submarket including Roche, Onyx
Pharmaceuticals, Inc., Theravance, Inc., Crescendo Bioscience, Inc., Exelixis,
Inc., Global Blood Therapeutics, Inc., and Stem CentRx, Inc.

About Alexandria Real Estate Equities, Inc.

Alexandria Real Estate Equities, Inc. (NYSE: ARE), a self-administered and
self-managed real estate investment trust (REIT), is the largest and leading
investment-grade REIT focused principally on owning, operating, redeveloping,
developing, and acquiring high-quality, sustainable real estate for the broad
and diverse life science industry. Founded in 1994, Alexandria was the first
REIT to identify and pursue a primary focus on the laboratory niche and has
since had the first-mover advantage in every core life science cluster
location including Greater Boston, the San Francisco Bay Area, San Diego, New
York City, Seattle, Suburban Washington, D.C., and Research Triangle Park.
Alexandria's high-credit client tenants span the life science industry,
including renowned academic medical research centers, multinational
pharmaceutical companies, public and private biotechnology entities, U.S.
government research agencies, medical device companies, industrial
biotechnology companies, venture capitalists, and life science product and
service companies. Forty-seven percent of Alexandria's total annualized base
rent is from investment-grade client tenants. As the recognized real estate
partner of the life science industry, Alexandria has a superior track record
in driving client tenant productivity, collaboration, and innovation through
its CBD locations adjacent to leading academic medical research centers,
best-in-class laboratory/office space, unparalleled life science real estate
expertise and services, and longstanding and expansive network in the life
science community, which we believe result in higher occupancy levels, longer
lease terms, higher rental income, higher returns, and greater long-term asset
value. For more information, please visit www.are.com.

This press release contains forward-looking statements within the meaning of
the federal securities laws. Actual results may differ materially from those
projected in the forward-looking statements. Additional information concerning
factors that could cause actual results to differ materially from those in the
forward-looking statements is contained in our Annual Report on Form 10-K and
our other periodic reports filed with the Securities and Exchange Commission.

SOURCE Alexandria Real Estate Equities, Inc.

Website: http://www.are.com
Contact: Joel S. Marcus, Chairman, Chief Executive Officer, & Founder of
Alexandria Real Estate Equities, Inc., +1-626-578-9693
 
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