After quietly taking over the lease for an entire Rockville building in June, biopharmaceutical company AstraZeneca says it plans to invest $300M to outfit the property for a new manufacturing facility.
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The Cambridge, UK-based company took over an 85K SF lease at Alexandria Real Estate Equities’ 9950 Medical Center Drive from cell therapy company TCR2 Therapeutics in June, according to a filing with the Securities and Exchange Commission.
Now, it intends to revamp the property to launch its cell therapy platforms in the U.S. for critical cancer trials and future commercial supply, the company announced Tuesday. AstraZeneca expects to bring 150 employees to the property.
AstraZeneca already has a large presence in Maryland’s life sciences market. The company has a 1.3M SF research and development campus in Gaithersburg housing 4,300 employees. In December, it inked a 198K SF industrial lease in Gaithersburg at Matan Cos.’ newly developed 700 Progress Way.
"This new $300 million investment will accelerate our ambition to make next-generation cell therapy a reality, ensuring that we are ready to scale and meet the demands of patients," AstraZeneca Chief Sustainability Officer Pam Cheng said in a release.
This is the second time in three years that life sciences REIT Alexandria has replaced the tenant at the 9950 Medical Center Drive property.
In March 2021, Autolus Therapeutics terminated a deal to move into the building just two years after signing a lease there for its headquarters.
The same day that termination was revealed, TCR2 Therapeutics announced it signed a 15-year lease for the building.
Last year, the company signed the lease over to AstraZeneca.
The appetite for life sciences development is cooling in markets across the country amid declining venture capital funding, rising construction costs, high interest rates and a pandemic-era oversupply in some markets.
It is no different in Maryland’s life science corridor, one of the largest hubs in the country, but experts say the region is in a healthy place because it didn't overbuild like other regions. The submarket had a life sciences vacancy rate of 4.4% as of the end of the year, while its peers like Boston-Cambridge and San Francisco had 10.8% and 18% vacancy rates, respectively, according to CBRE.
"This significant investment in our life sciences sector will help maintain Maryland’s leadership in the industry and sharpen our competitive edge. We are deeply grateful for AstraZeneca’s partnership and continued commitment to our state," Maryland Gov. Wes Moore said in the release.
Check out our newly announced, second-annual International Life Sciences & Biotech Conference taking place in Rockville, Maryland, on Sept. 11 and 12.
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