In its first quarter of 2026, Alexandria Real Estate (NYSE:ARE) reported a challenging operating environment, highlighted by a decrease in occupancy to 87.7%, down 320 basis points from the previous quarter. The company did not sign any public biotech leases during this period, which typically account for a significant portion of its annual rental revenue. However, Alexandria remains focused on strategic initiatives aimed at improving occupancy and reducing capital expenditures. The company has signed several letters of intent leading to leases, particularly in its life science mega campuses, which represent 78% of its total annual rental revenue. Alexandria's leadership expressed a cautiously optimistic outlook despite ongoing challenges, including leadership issues at the National Institutes of Health (NIH) and the Food and Drug Administration (FDA), as well as constraints in capital markets. The company continues to dominate leasing in its largest markets, capturing approximately 20% of total leases in Greater Boston, 30% in the San Francisco Bay Area, and 67% in San Diego, significantly outperforming its market share. Alexandria's commitment to maintaining a strong balance sheet and operational excellence remains a cornerstone of its strategy moving forward.