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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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2012
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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