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.