greater boston life sciences report
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Boston clusters driving scientific innovation
Life Sciences Outlook Greater Boston | Summer 2012
Scan the QR code to learn more about how our life sciences teamenhances the connection between real estate and discovery
CambridgeThe global hotbed of life sciences activity
SuburbsNorth and west benefits from spillover demand
Seaport DistrictInnovation District offers unique alternative option
Longwood Medical and Academic AreaLife sciences tenants seeking proximity to healthcare hub
www.lifesciencespace.com
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Jones Lang LaSalle Life Sciences Outlook Boston Summer 2012
Rent ringThe concept of the rent ring is built on the understanding that the Greater Boston life sciencesindustry stems from East Cambridge. This market has become incredibly dense, with just over seven million square feet of lab space in less than a 1.5 mile radius from the Kendall Square MBTAStation. As a result, this market is extremely competitive, with few growth options and asking rentsreaching as much as $65 per square foot NNN for trophy spaces. East Cambridge represents thebull's-eye, the center of the ring, where rents are highest. Consequently, demand begins to spilloutwards.
Asking rents are lowered as tenants begin to look right outside of East Cambridge, in WestCambridge and Watertown to the west and Charlestown and the Seaport District to the east. Thesemarkets are far less dense and act as emerging clusters. Here, asking rents vary from $32 to $46per square foot NNN, still high, but considerably lower than East Cambridge rates. The next step
The ripple effect of East Cambridge
outwards are suburban towns of Bedford, Lexington, Waltham, Medford and Somerville. Again thlandscape changes dramatically, where lab space is considerably less clustered, but with lower rents ranging from $25 to $32 per square foot NNN. Farther out sits Woburn and Beverly, whereasking rents range from $19 to $25 per square foot NNN. The Longwood Medical and Academic Area remains a unique outlier in the rent ring, where rents are often higher than those of EastCambridge ($58 to $70 per square foot NNN) due to its downtown location and proximity tohealthcare institutions. However, the size of the leasable lab market in LMA is significantly smallthan East Cambridge, and does not have the same affect on the overall Greater Boston life
sciences market.The next sections present a deep dive into each of these clusters, and how each falls into the lifesciences rent ring.
The Jones Lang LaSalle Life Sciencesrent ring$54.00-$65.00
$32.00-$46.00
$25.00-$32.00
$19.00-$25.00
$58.00-$70.00
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Cambridge development
17 Cambridge Center 190,000 s.f.Office building
17 Cambridge Center 190,000 s.f.Office building
Boston PropertiesBiogen Idec campus
225 Binney Street307,000 s.f.Office w/ lab
infrastructure
225 Binney Street307,000 s.f.Office w/ lab
infrastructure
Alexandria Real EstateBiogen Idec campus
610 Main StreetPhase I (235,000 s.f.)610 Main StreetPhase I (235,000 s.f.)
1.4M s.f.Remaining planafter 225 Binney St
1.4M s.f.Remaining planafter 225 Binney St
Alexandria Center at Kendall Square
75 Ames Street250,000 s.f.Boston Propertiesdeveloping
75 Ames Street250,000 s.f.Boston Propertiesdeveloping
Broad Institute
181 Mass. Ave.550,000 s.f.Land lease
181 Mass. Ave.550,000 s.f.Land lease
2.0M s.f. (Commercial)Office and lab mix 2.0M s.f. (Commercial)Office and lab mix
NorthPoint
400 Technology Sq.213,000 s.f.Office to labconversion
400 Technology Sq.213,000 s.f.Office to labconversion
Alexandria Real Estate
University Park265,000 s.f.Looking for tenant commitment
University Park265,000 s.f.Looking for tenant commitment
Forest City
150 Second Street123,000 s.f.Speculative labdevelopment
150 Second Street123,000 s.f.Speculative labdevelopment
SkanskaMITIMCo Pfizer Novartis
OutlookCambridge will remain a stronghold for the life sciences community, and thus will remain extremelycompetitive. While average asking rents are quite strong in the Cambridge lab market, the vacancyrate still remains relatively high (14.8 percent) compared to the Cambridge office market (6.7
percent). There are still eight blocks of available space over 50,000 square feet if one includes 400Technology Square and 150 Second Street which are both slated to deliver at the end of this year.
However, it is expected that lab demand will continue to grow over the course of 2012 to help fillthese spaces. Users seeing two to three hundred percent growth projections are poised to expandinto these larger blocks of space, where startup and mid-tier organizations will continue to absorb
the remaining space within this world class R&D hub.
Not under construction
0%preleased
0%preleased
82%preleased82%preleased
100%preleased100%preleased
100%preleased100%preleased
40 Thorndike Street519,000 s.f.Future use - TBD
40 Thorndike Street519,000 s.f.Future use - TBD
Middlesex Courthouse
0%preleased0%preleased38%preleased38%preleasedOwner occupiedOwner occupied
Owner occupied
Owner occupied
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