Biotech Firm Downsizes Big Time
South S.F is already struggling with empty space, and it's about to get worse. Thanks to a failed drug trial, one biotech is about to give up a big block of space. (This is your occupancy. This is your occupancy on drug trials.)
We are hearing from sources that Exelixis, the maker of the Cometriq thyroid cancer drug, is prepping to put a large chunk of office space on the sublease market. Sources tell us it's giving back a little less than 200k SF—out of 215k SF in five buildings, according to CoStar (the HQ is at 210 E Grand Ave). We hear Kidder Mathews just got the sublease listing. Last month, Exelixis' stock tanked after the failure of a late-stage trial that examined Cometriq in men with prostate cancer. The South S.F. Class-A office market posted a 23.5% vacancy rate in Q3. Bearing in mind the life science space is much more specialized than typical Class A-office space, the market is still very tight, says a source.
