Disruption 2020: Q2 Lab Update

by | 14 July 2020

Greater Boston’s lab market is cooling off a bitOffice has taken a step back, particularly in Boston, that is beginning to occur in the lab market as well. Here are five key takeaways on second quarter stats. 

  • Lab absorption was positive 335,000 SF in Q2. The completion of 400-500 Cambridge Discovery Park in Alewife and Alkermes’ headquarters in Waltham drove activity. 
  • Boston demand paused, while Cambridge and the suburbs each saw demand growth (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 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. 
  • There remains a strong tenant in the market list, headlined by Biogen, which is looking for manufacturing space, and CRISPR, which is said to be close to signing a deal.