By Meghan Hall
American biotechnology company 10x Genomics is working hard to move forward with plans for expansion in its hometown of Pleasanton, Calif. Following on the heels of a property acquisition near its current headquarters and Stoneridge Mall, 10x has pitched its plans for a new three-building, 381,000 square foot campus.
“Today, we are in the Century of Biology. Our 10x technologies are fueling discoveries around the globe at a rapid rate, accelerating the need to expand our facilities to better serve our customers,” said Serge Saxonov, Co-founder and CEO of 10x Genomics in a statement. “Pleasanton has been an incredible base for us since our start in a garage almost ten years ago with its great talent, affordable cost of living and vibrant community. We look forward to extending our headquarters in this city and staying here for years to come.”
10x purchased its newest property at 1701 Springdale Ave. in an all-cash transaction in January for $29.4 million. The property was sold by Regency Centers, a Florida-based company and one of the largest operators of retail centers in the country.
The project will be built in the coming years, with the first building expected to open in 2022. The first building will include both clean rooms as well as lab and office space. As the second building is constructed, 10x intends to expand its current operations to a second building at the Pleasanton Corporate Commons. Plans also include the construction of a parking garage. Prior to move-in, the building will undergo “extensive” interior build-out to better equip it for research and development. 10x plans to occupy its new spaces by 2023.
Founded in 2012, 10x has grown quickly over the past ten years. The company aims to use biology to advance human health in various areas of expertise, including oncology, immunology and neuroscience. According to public filings, 10x has seen its employee count increase from 110 to 584 between 2015 and 2019. After going public in September of 2019, the company has seen its stocks continue to rise. The company has filed more than 1,000 patents and placed more than 2,400 chromium instruments in top institutions worldwide.
10x’s current headquarters is located just up the street, at 6320 Stoneridge Mall Road. In all, 6320 Stoneridge rises five-stories and totals 152,427 square feet. The building was constructed in 2002, according to public records. 10x leased the building at the end of 2018 after reporting an explosion of revenue growth. The firm moved from a 40,000 square foot building at Koll Center Parkway.
“10x Genomics’ investment in new facilities to expand its headquarters and research presence further demonstrates that Pleasanton is a flagship city for life sciences companies,” said Mayor Karla Brown, City of Pleasanton. “We look forward to our continued partnership in working with 10x Genomics on this project.”
10x is building its new headquarters as the Tri-Valley office market adjusts after a year of uncertainty. At the end of the fourth quarter, the submarket reported a vacancy rate of 13.2 percent. Class A rents decreased to about $3.09 per square foot, and net absorption came to a negative 305, 639 square feet. Tenants vacating space, notes a report from Colliers International, added an additional 541,000 square feet to the market, producing the largest negative net absorption since 2014.
“While some tenants decided to retain their office footprint as employees continue to work from home, other companies downsized as the future of the post- pandemic remains unknown,” states the report. Colliers adds that 10x Genomics was one of the few companies to increase its footprint in the market by the end of the year. Colliers predicts that downward pressure on rents will remain in the coming months until employees can fully return to the office.