Another South City Lease Tops $70/Sq ft

 By David Gross

Small molecule oncology developer ORIC Pharmaceuticals recently extended its lease at Healthpeak’s 240 Grand Avenue building, renewing over 33,000 square feet for an initial base rent of $70.20.  This is the second major lease to top $70/ft in South City, where rates had been holding in the high 60s.   While ORIC’s stock has taken some hits this year, it recently received an IND from the FDA to being clinical trials of its CD73 inhibitor, intended to reduce resistance to chemotherapy.  

A major question is here whether Healthpeak will redevelop its Britannia Pointe properties on Grand Avenue, which mostly consist of one to two story buildings adjacent to Genentech HQ.  With available space decreasing and rent rates increasing, these properties could be targets for future redevelopment.