The report highlights the health of the region’s biotechnology real estate market, detailing activity in Cambridge, Boston and the suburbs. The report provides statistics on market size, vacancy, and “take-up,” a more timely measurement than absorption that tracks availability changes when leases are signed, intentions to vacate are announced or users break ground on new projects. The report also covers information on mergers, acquisitions and venture capital funding.
“It’s not surprising to see a second strong reporting period in a row,” said Chase Bourdelaise, Transwestern’s Research director for the Northeast. “We’ve recently had another biopharmaceutical giant announce plans to relocate to Cambridge, while other big-name, large users announced plans to expand their footprints locally.”
East Cambridge, widely regarded as one of the world’s top biotechnology clusters, remains the region’s biggest draw. The submarket experienced 380,000 square feet of positive take-up in the third quarter alone, driving availability to 4.4 percent, its lowest point in 10 years. The broader Cambridge market closed the quarter at 13.9 percent vacancy.
The Boston laboratory market, while much smaller than Cambridge’s, is nonetheless the tightest. The market’s 9,000 square feet of positive take-up during the last two quarters drove vacancy down to 0.2 percent, its lowest point ever. The suburbs, with vacancy at 8.5 percent, saw significant activity in Waltham, Bedford and Lexington.