Greater Boston’s lab market is cooling off a bit. Office has taken a step back, particularly in Boston, and that is beginning to occur in the lab market as well. Here are five key takeaways on second quarter stats:
- Lab absorption was positive by 335,000 SF in Q2. The completion of 400–500 Cambridge Discovery Park in Alewife and Alkermes’ headquarters in Waltham drove leasing.
- Boston demand paused, while it grew in Cambridge and the suburbs (261,000 SF and 74,000 SF, respectively).
- Developers are still anxious to get their hands on future development or redevelopment sites.
- Alexandria and National Development announced a deal at the Mount Auburn Club.
- IQHQ is buying the GCP Applied Technologies campus in Alewife.
- Spear Street is acquiring Tufts/Harvard Pilgrim’s Watertown assets.
- While office rents have stalled, lab rents continue to grow, up 16.3% year-over-year.
- The tenant-in-the-market list is still strong, headlined by Biogen, which is looking for manufacturing space, and CRISPR, said to be close to signing a deal.