Greater Boston’s lab market is cooling off a bit. Office 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.