Alexandria Real Estate Equities

Embedded rent escalators and positive leasing spreads provide tangible pricing power. In 2Q25, re-leasing and renewal spreads were approximately 5.5% (6.1% cash), and 97% of leases include annual escalators near 3%. Alexandria’s campus format and limited like-for-like alternatives in AAA clusters enhance negotiating leverage over time.

Headwinds include periods of elevated sublease supply and slower venture funding that can delay leasing decisions, temporarily pressuring occupancy. Overall, the rent-setting mechanism is structurally favorable even through cycles.