Boston

Q1 2020

Life Sciences Outlook

Greater Boston’s lab market forges ahead

• Companies critical to the COVID-19 response and others continue with Inventory overview
expansion throughout the market helping buoy the Massachusetts
economy amongst market chaos East Cambridge 8,910,153
• 780,000 square feet of new lab inventory delivered in Greater Boston Seaport District 2,110,471
• In the suburbs, 1.4 million square feet continues to progress Waltham 1,849,365
Lexington 1,350,676
The global pandemic has provided an opportunity for the United States, and
Greater Boston to showcase its research and development speed and scale. Fenway/Longwood 1,309,080
Many local companies such as Alnylam, Novartis, Takeda, and others Woburn 1,169,825
continue to work around the clock to develop therapies and vaccines to West Cambridge 1,065,758
combat COVID-19. One of the leaders on this front is Moderna, which
occupies over 500,000 square feet across laboratory and manufacturing Bedford 812,808
space in Cambridge and Norwood. Companies critical to the COVID-19 Framingham 779,039
response and others continue with expansion throughout the market helping Watertown 636,020
buoy the Massachusetts economy amongst market chaos.
Burlington 535,802

The Greater Boston market forges ahead as 780,000 square feet of new lab
Existing s.f
inventory delivered. That brings the trailing 12 month total deliveries to 1.51
million square feet or 6 percent of inventory. An additional 4.9 million square East Cambridge 4,951,600
feet remains in the construction pipeline with about 47 percent pre-leased.
Seaport District 3,774,000
Construction progress is bifurcated between Boston, Cambridge, and the
Suburbs. All projects in Boston and Cambridge have grounded to a halt with Allston/Brighton 2,539,000
1.8 and 1.7 million square feet in development respectively. In the suburbs, Somerville 1,420,000
the 1.4 million square feet continues to progress which could afford
Fenway/Longwood 1,200,251
developers an advantage in capturing tenants that can’t wait for space to be
built down the road. Waltham 908,444
West Cambridge 832,000
Outlook
Watertown 768,925
This quarter was defined by new investors into the lab market. Phase 3, Nan
Fung, IQHQ all entered the market while Hobbs Brook purchased its first Lexington 735,868
existing lab building. Healthpeak continued its aggressive Greater Boston Charlestown 494,000
Market expansion with its purchase of The Post and Alexandria began work on
converting the Athena campus in Watertown to lab.
Under Construction Proposed

For more information, contact: David Coffman| david.coffman@am.jll.com

© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracythereof.
Q1 2020

U.S. cluster rankings

Weighted Life sciences employment concentration:

Rank Cluster
score Weight: 20.0%
1 Greater Boston Area 89.2 Measured as the percent of industry employment againsttotal
metro private employment. (BLS, 2017)
2 San Francisco Bay Area 81.6 Life sciences venture capital funding:
3 San Diego Metro Area 71.6 Weight: 15.0%
4 Raleigh-Durham Metro Area 64.3 Funding from 2018 (Crunchbase)
Total lab supply:
5 Suburban Maryland/Metro DC 52.5
Weight: 15.0%
6 Seattle Metro Area 49.9 Life sciences employment growth:
7 New Jersey 48.2 Weight: 10.0%
8 Philadelphia Metro Area 47.2 Life sciences establishments concentration:
Weight: 10.0%
9 Chicago Metro Area 43.5 Measured as the percent of industry establishmentsagainst
10 Los Angeles/Orange County 41.1 total metro private establishments. (BLS,2017)
11 Denver Metro Area 38.8 Life sciences National Institutes of Health funding:
12 Houston 35.7 Weight: 10.0 %
National Institutes of Health, 2018
13 New York City 34.1
Market occupancy rate:
14 Minneapolis–St. Paul Metro Area 30.8 Weight: 10.0%
15 Westchester County 27.4 Average asking rent (NNN):
16 Long Island 23.7 Weight: 10.0%

For more information, contact: David Coffman| david.coffman@am.jll.com

© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracythereof.
Q1 2020

Market dashboard

For more information, contact: David Coffman| david.coffman@am.jll.com

© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracythereof.
Q1 2020

Cambridge

Address Owner Square feet Committed Asking Rent

Construction

238 Main Street MITIMCO 386,600 93% $110.00

Under

250 Water Street DivcoWest 504,000 0% $102.50

400/500 Cambridge Discovery Pk Bulfinch Companies 270,000 89% $85.00

Tenant Address Square Feet Type

Leasing

Intellia 281 Albany Street 39,000 Expansion

Vor Biopharm 100 CambridgePark Drive 32,032 Relocation
Civetta Therapeutics 10 Wilson Road 27,293 Relocation

Address Owner Square feet Timing Asking Rent

Large Blocks

10 Wilson Rd. Invesco 43.550 Immediate $80.00

100 Discover Park (Sublease) Bulfinch 32,951 Immediate $80.00
620 Memorial Dr (Sublease) MITIMCO 20,751 Q4 2020 $85.00

Address Square feet Buyer Seller $/SF

35 CambridgePark Drive 223,000 HealthPeak Prop. The Davis Companies $1,492
Sales

733 Concord Ave. 44,280 Carlyle Group Morgan Stanley $1,129

East Cambridge West Cambridge

New construction asking rents Alewife area continues

top $100 NNN to flourish
• Asking rents at MIT’s new Kendall Square development • The Bulfinch Companies kicked off a 250,000-square-
have topped $100 NNN per square foot. The 386,000- foot speculative lab in the second half of 2018, and all
square-foot building is already 80 percent committed, but one floor is already committed.
illustrating companies’ appetite to pay record rents for a • The Davis Companies wrapped up a 225,000-square-foot
premier location. speculative lab development, leasing the entire building
• Space in East Cambridge remains a scarcity with only among five different tenants upon completion.
0.04 percent vacancy. Developers have tried to respond • These two projects signal the demand for speculative
to a space crunch and now 18 percent of total supply is development outside of East Cambridge, once
under construction. However, over 50 percent of the considered too risky. Now it is essentially a must to
pipeline
For more is already
information, committed,
contact: despite
David Coffman| the lion’s share
david.coffman@am.jll.com develop on spec to tap into tenant demands that often
not delivering until 2021. require less than
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no 12 months’
representation timingis made
or warranty for new space.
to the accuracythereof.
Q1 2020

Seaport District

Address Owner Square feet Committed Asking Rent

Construction

ISQ Phase II Related Beal 268,000 100% N/A

Under

Parkside on A Tishman Speyer 260,000 0% $84.00

201 Brookline Avenue Samuels & Associates 480,250 23% $90.00

Tenant Address Square Feet Type

Leasing

Vertex Pharmaceuticals 316 Northern Avenue 268,916 Expansion

Tango Therapeutics 201 Brookline Avenue 65,000 Relocation

Address Owner Square feet Timing Asking Rent

Large Blocks

645 Summer Street Oxford Properties 75,000 Immediate $75.00

451 D Street Related Beal 156,430 Immediate $78.00
100 Hood Park Drive Catamount Mgmt 54,000 Q4 2020 $63.00

Address Square feet Buyer Seller $/SF

109 Brookline Avenue 285,556 IQHQ Equity Commonwealth $945
Sales

51 Sleeper Street 153,000 Nan Fung Life Sciences Brookfield Properties $752
1 Winthrop Square 114,257 Nan Fung Life Sciences Mapfre $656

• Two new players entered the ever-crowding Boston life

Developments break ground
across the Hub
• Multiple sites broke ground this quarter as the Seaport
and Fenway further establish themselves as life science
cluster alternatives to Kendall Square. Delivery dates will
be pushed out as the moratorium on construction across
the city still presides. Samuel’s and Associates started at
201 Brookline with 90,000 square feet committed to Tango
Therapeutics and Third Rock Ventures. In the Seaport, WS
Development broke ground on the 580,000 square-foot
built-to-suit for Foundation Medicine and Tishman broke
ground on the 280,000 square-foot speculative Parkside
on A development across from the Red-Lines Broadway T
Stop.information,
For more This is the first David
contact: project to start
Coffman|
david.coffman@am.jll.com
street micro-market that has recently seen substantial
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemedmove
investment from Alexandria and Related Beal.
science arena. Nan Fung holdings purchased 51 Sleeper
Street and 1 Winthrop Square in the Seaport and Financial
District respectively. Neither property has current lab
infrastructure, but Nan Fung intends to create lab space in
existing vacancy and as space turns over. IQHQ, a newly
formed REIT, led by life science industry veteran Alan Gold
who helped start BioMed Realty, purchased 109 Brookline
Avenue. The building is fully leased to medical, lab, and
office using tenants Beth Israel, Dana Farber, Boston
Children's, and Toast. The firm plans to aggressively grow
in top life science markets Boston, San Francisco, and San
Diego.
• With construction in Boston halted, there are really only a
small handful of lab suites that are lab –ready without
having to accommodate tenant build out time. It will be
on the coveted A
incredibly difficult for tenants that are still operating to
reliable; within the
however, no submarket
representation andislease
or warranty made to new space.
the accuracythereof.
Q1 2020

Suburbs

Address Owner Square feet Committed Asking Rent

Construction

Boynton Yards DLJ Real Estate 289,000 0% $75.00

Under

75 Hayden Avenue, Lexington King Street Properties 214,000 73% $68.50

225 Wyman Street, Waltham Hobbs Brook Mgmt 250-500,000 0% $65.00

Tenant Address Square Feet Type

Leasing

Dicerna Pharma 75 Hayden Ave, Lexington 61,282 Relocation

C2sense 480 Arsenal St, Watertown 15,899 Relocation
Frequency Tx 75 Hayden Ave, Lexington 61,307 Relocation

Address Owner Square feet Timing Asking Rent

Large Blocks

4 Corporate Drive, Andover Eisai 193,000 Immediate Low to Mid $30.00s

Burlington BioCenter, Burlington Gutierrez Company 109,500 Immediate $52.00
1560 Trapelo Rd, Waltham Phase 3 RE 70,000 Q4 2020 $56.00

Address Square feet Buyer Seller $/SF

The Post, Waltham 430,000 Healthpeak Properties Anchor Line JV Northwood $744
Sales

1560 Trapelo Rd, Waltham 70,000 Phase 3 RE Bulfinch Cos $352

Ledgemont Technology Center 174,000 Hobbs Brook Mgmt Related Beal $644

or $644 per-square-foot. Hobbs Brooks also controls the

Tenants remain active in the
suburbs
• Leasing has picked up the pace at King Street Properties
speculative development 75 Hayden, as now only a floor
and half remains for lease. Dicerna Pharmaceuticals,
Frequency Therapeutics, and Voyager Therapeutics all
took substantial amounts of space leaving the building 73
percent committed. 75 Hayden once again proves
clearance to the power of speculative lab development.
Tenants in the Life Science industry often times can’t wait
the required 24 months for a build-to-suit project to
complete as often times most space requirements need to
be fulfilled within 12 months of hitting the market.
A flurry
•For more of salescontact:
information, transacted inked this
David Coffman|
david.coffman@am.jll.com
markets. Hobbs Brook purchased the long held
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemedvirtually
Ledgemont Tech Center from Related Beal for $112 million
rights of the adjacent land parcel giving them the
opportunity to nearly triple the size of the existing
research campus.
• An experienced lab developer made a new entry into the
Greater Boston market with two mid-size lab deals. Phase
3, who is well known on the West Coast, purchased 900
Middlesex Tpke which is fully leased to Quanterix. They
also picked up the vacant 1560 Trapelo Road office asset,
which has sat vacant for nearly five years since Autodesk
moved to the Seaport. They are converting the building to
accommodate lab and are close to signing on the first
tenants.
• With only handful of lab-ready suites in Boston and
Cambridge, the suburbs are poised to benefit in the near-
term from tenants that are still operating and looking for
quarter in the capital
space. Without the ability to build out lab suites, it will be
impossible
reliable; however, for firms
no representation in Boston
or warranty and
is made to the Cambridge to
accuracythereof.
transact other than renewals.