By David Gross
Nkarta, a developer a Natural Killer (NK) cells for cancer therapies has leased 88,106 square feet in South San Francisco with an initial rent of $76.80 per square foot. The 12 year term includes 3% annual escalators that will bring base rent to approximately $111 per square feet in the final year of the lease.
The landlord, Healthpeak Properties, is including a net TIA, or Tenant Improvement Allowance, of $236 per square foot to cover the buildout of the space, which will include 2,700 square feet of cGMP manufacturing space. Rates in South City continue to outpace rates in the "City" of San Francisco where a flood of sublease space is available around Mission Bay, and due to tenant concerns about Prop C taxes.