Alexandria Real Estate Looks to Sell $581M in Assets as Leasing Struggles Continue

The nation's largest owner of life sciences real estate posts another depressed quarter amid political and economic headwinds.

Jan. 27, 2026 at 5:07pm

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Alexandria Real Estate Equities, the nation's largest owner of life sciences real estate, has reported another difficult quarter, with leasing unchanged from the previous quarter and a further decrease in funds from operations (FFO). The company is now looking to sell off about $581.7 million in underperforming assets in key markets throughout 2026 as it faces challenges such as dwindling federal funding for biomedical technology, leadership changes at the FDA, and a resurgence of preventable diseases.

Why it matters

Alexandria's struggles reflect broader challenges facing the life sciences real estate sector, which has seen an oversupply of new development in recent years due to low interest rates and strong venture capital funding. The company's planned asset sales and focus on maintaining a strong balance sheet highlight the need for life sciences landlords to adapt to changing market conditions.

The details

Alexandria saw 1.2 million square feet leased during the fourth quarter of 2025, the same as the previous quarter. However, the company will also have 1.2 million square feet of lease expirations in its Boston, San Francisco, and San Diego markets during the first quarter of 2026, which could take 6 to 24 months to backfill. FFO attributable to Alexandria's common stockholders was $368.5 million during the fourth quarter of 2025, down from $377.8 million in the previous quarter. Net loss attributable to common stockholders also continued to increase, reaching $368.5 million in the last three months of the year.

  • In the fourth quarter of 2025, Alexandria leased 1.2 million square feet, the same as the previous quarter.
  • In the first quarter of 2026, Alexandria will have 1.2 million square feet of lease expirations in its Boston, San Francisco, and San Diego markets.
  • During the fourth quarter of 2025, Alexandria's FFO attributable to common stockholders was $368.5 million, down from $377.8 million in the previous quarter.
  • In the fourth quarter of 2025, Alexandria's net loss attributable to common stockholders was $368.5 million, up from $234.9 million in the third quarter and $109.6 million in the second quarter.

The players

Alexandria Real Estate Equities

The nation's largest owner of life sciences real estate.

Joel Marcus

Alexandria's founder and executive chairman.

Robert F. Kennedy Jr.

The U.S. Health and Human Services Secretary nominated in February 2025.

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What they’re saying

“In 2025, we witnessed the fifth year of a life science bear market. Our timeline clearly evidences that no one could have predicted the February 2025 nomination of [ U.S. Health and Human Services Secretary Robert F. Kennedy Jr. ], the intense cascade of events from that point on, and, in fact, sadly, measles and polio might be back to some extent.”

— Joel Marcus, Founder and Executive Chairman, Alexandria Real Estate Equities

“2026 is all about timely execution of our plan heavily focused on dispositions and maintaining a strong and flexible balance sheet, and driving occupancy with intense leasing focus on vacant space, redevelopment and development space.”

— Joel Marcus, Founder and Executive Chairman, Alexandria Real Estate Equities

What’s next

Alexandria's board of directors has approved $500 million to repurchase common stock, but the company has not yet initiated that program.

The takeaway

Alexandria's struggles reflect broader challenges facing the life sciences real estate sector, which has seen an oversupply of new development in recent years. The company's planned asset sales and focus on maintaining a strong balance sheet highlight the need for life sciences landlords to adapt to changing market conditions, including political and economic headwinds.