On January 19, 2022, Singular Genomics Systems, Inc. entered into a Lease Agreement with an affiliate of Alexandria Real Estate Equities, Inc. to lease two buildings (“Building 3” and “Building 4”) to be constructed in connection with One Alexandria Square in La Jolla, California. Building 3 and Building 4 are comprised of 113,094 square feet and 92,572 square feet, respectively, of office and manufacturing space and will serve as the Company's future headquarters. The term of the Lease will commence when ARE's work for Building 3 is substantially complete, which is expected to be November 1, 2024 (the “Commencement Date”).

The Company's obligation to pay rent for Building 3 will begin approximately seven months following the Commencement Date. The Company's obligation to pay rent for Building 4 will begin 12 months following the Commencement Date, subject to the substantial completion of ARE's work on Building 4. The Company has an option to accelerate the construction and delivery of Building 4 to be the same date as the Commencement Date and will receive 12 months of base rent abatement on Building 4 if it exercises this option. The initial term of the Lease is 144 months following the Commencement Date.

The Company has the one-time option to extend the term of the Lease by 60 months upon prior notice to ARE. The annual base rent under the Lease is initially $64.80 per square foot per year, subject to annual increases of 3% and certain other adjustments, and includes tenant improvement allowances. The Company will also pay for an estimated $24 million of certain tenant improvements plus 7% interest per year amortized in equal monthly payments over the term of the lease.

At the time of entering into the Lease, the Company paid ARE $1.1 million as prepayment for rent and, as a security deposit, provided ARE with a $1.1 million standby letter of credit.