bioSTATus
Spring 2020 all data as of, or for the quarter ended March 31, 2020
the standard in biotechnology research-focused laboratory real estate intel since 2002
In the first half of 2020 the world has been profoundly effected by the COVID-19 pandemic and efforts to minimize its spread. We believe there will be effects on the Greater Boston biotechnology real estate market, though the nature and extent of these effects are not fully understood or meaningfully measurable at this time. We look forward to being a resource for you as the greater economy and our local market respond to this challenge.
Cambridge City Council approved more than 900k sf of new lab with the Cambridgeside Galleria redevelopment and the 325 Binney Street ‘up-zoning’.
1.0
Watertown’s 850,000 sf Arsenal on the Charles has begun redevelopment for life sciences use following acquisition by Alexandria Real Estate Equities.
12%
vacancy right axis %
absorption completions sf in millions, left axis
0.8
Lexington’s 214,000 sf 75 Hayden Street, started on spec, is now 72% preleased following leases to Dicerna Pharma, Frequency Tx and Voyager Tx.
10%
0.6
8%
0.4
6%
0.2
4%
0.0
2%
-0.2
0% 2014
2015
2016
2017
GREATER BOSTON | TOTAL MARKET 21.4mm
total sf
3.7%
vacancy
+1.9mm
ttm abs sf
3.4mm
construction sf
$45-120
$ ask nnn per sf
An increasing desire to tap into the talent and collaborative environment of Greater Boston’s biotechnology community continues to fuel positive demand for real estate from both local and out-of-market users. An expanding set of groups continue to fuel positive demand for space in a diversity of locations far beyond its original Cambridge cluster with viable new areas emerging throughout the region.
BOSTON/URBAN 3.5mm
total sf
0.0%
vacancy
2018
2019
2020
CAMBRIDGE 12.2mm
total sf
3.3%
vacancy
+585k
ttm abs sf
2.3mm
construction sf
$75-120
$ ask nnn per sf
Moderate Cambridge quarterly absorption is dwarfed by a recent demand surge which has seen committed square footage increase by 2.1 million sf over the last eight quarters. With Class A rents surging well past $100 per sf nnn, available spaces scant and clean development opportunities depleted, developers have generated the next two million sf of potential development through creative methods.
SUBURBS +1.0mm
ttm abs sf
691k
construction sf
$75-95
$ ask nnn per sf
Commitments in the Boston/Urban submarket has surged with more than one million sf of net commitments over the last four quarters. This velocity is a fundamental shift from demand that had averaged 63,000 sf annually in the preceding five years. Urban attractiveness is increasingly fueled over a successful extension of Cambridge’s attractiveness beyond its municipal borders.
www.cushmanwakefield.com
5.7mm
total sf
6.8%
vacancy
+310k
ttm abs sf
434k
construction sf
$45-65
$ ask nnn per sf
The suburban market for laboratory space remains stable, with space users increasing commitments by 310,000 sf over the past four quarters. Suburban lab users have been motivated by a plentiful mix of seasoned and newly educated biotech workers, close-range amenities and deliberately collaborative architecture. This has spurred successful leasing of speculative projects in Lexington and Waltham.
bioSTATus
Spring 2020
bioSTATusmaps Boston bio, mapped
Select Lease Transactions
20,000 sf & larger transactions
map
tenant
address
size (sf)
3
Abcam
152 Grove St, Waltham
100,000
signed Jan 20
2
Arrakis Tx
828 Winter St, Waltham
70,000
Mar 20 Feb 20
1
Frequency Tx
75 Hayden Ave, Lexington
60,000
1
Dicerna Pharma
75 Hayden Ave, Lexington
60,000
Jan 20
11
Kronos Bio
301 Binney St, Cambridge
40,000
Feb 20
10
Sana Bio
300 Technology Sq, Cambridge
33,000
Mar 20
Vor Bio
100 Cambridgepark Dr, Cambridge
30,000
Mar 20 Mar 20
7 1
Voyager Tx
75 Hayden Ave, Lexington
30,000
6
Yumanity Tx
40 Guest St, Boston
30,000
Jan 20
3
Xilio Tx
828 Winter St, Waltham
27,000
Feb 20
15 6
Entrada Tx
6 Tide St, Boston
24,000
Mar 20
Limelight Bio
40 Guest St, Boston
20,000
Mar 20
Select Sale Transactions
lab-only buildings 100,000 sf & larger
address
size (sf)
$ per sf
sold
4
Arsenal on the Charles, Watertown
860,000
$ 611
Dec 19
Alexandria RE
7
35 Cambridgepark Dr, Cambridge
224,000
$ 1,482
Dec 19
Healthpeak Properties
map
Select New Construction Activity
buyer
construction schedule (prior to COVID-19 stoppage)
address, city
lead tenant(s) or description
size (sf)
12
238 Main St, Cambridge
Bayer, Beam Tx, Labcentral 238
387,000
86%
1
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
900 Winter St, Waltham
Alkermes
220,000
100%
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
2
13
350 Water St, Cambridge
Sanofi
540,000
100%
0
0
0
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
13
450 Water St, Cambridge
Sanofi
450,000
100%
0
0
0
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
map
13 1 5 14 8 15 9
lease %
2018
2019
2020
2021
2022
250 Water St, Cambridge
Cambridge Crossing (spec)
504,000
0%
0
0
0
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
75 Hayden Ave, Lexington
Dicerna Pharma, Frequency Tx
214,000
72%
0
0
0
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
485 Arsenal St, Watertown
Kymera Tx, SQZ Bio
109,000
100%
0
0
0
1
1
1
1
2
2
2
2
2
2
2
2
2
2
2
400 Summer St, Boston
Foundation Medicine
491,000
100%
0
0
0
0
1
1
1
1
1
1
1
1
1
1
1
1
2
2
101 South St, Somerville
Boynton Yards
289,000
0%
0
0
0
0
0
1
1
1
1
1
1
1
1
2
2
2
2
2
316-318 Nothern Ave, Boston
Vertex
265,000
100%
0
0
0
0
0
1
1
1
1
1
1
1
2
2
2
2
2
2
201 Brookline, Boston
Tango Tx, Third Rock Ventures
501,000
18%
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1
1
2
2
preconstruction
construction
completion
bioSTATusmonitor what we’re tracking in the biotech real estate world for next time COVID-19 | How will the global virus pandemic effect the Greater Boston biotechnology market and the nature of highly collaborative, densified working environments? WATERTOWN | With a growing cast of investors and tenant roster, will Watertown continue to grow as a major cluster of biotechnology activity? BIG DEALS | Will any of the speculative projects in Boston or Cambridge gain an anchor tenant by the summer of ‘20?
Cushman & Wakefield has Boston’s most experienced life science advisory team and is a leading resource for building operators, investors and tenants with a diversity of laboratory assets and needs.
www.cushmanwakefield.com
Robert Richards Duncan Gratton Ted Lyon Connor Barnes Christopher Walsh Elizabeth Donatoni Steve Pesapane Brendan Carroll
robert.richards@cushwake.com duncan.gratton@cushwake.com ted.lyon@cushwake.com connor.barnes@cushwake.com christopher.walsh@cushwake.com elizabeth.donatoni@cushwake.com steven.pesapane@cushwake.com brendan.carroll1@cushwake.com