Metro Boston Biotech Beat | Q1 2018
Biotech firms continue to cluster outside of Cambridge; benefitting from demand for space in relief valve markets like Watertown, Waltham, Bedford, and Brighton. First quarter net absorption totaled roughly 269,000 SF in Boston and the Suburbs combined, and vacancies declined to 7.3%.The future remains bright for life science hubs outside of Cambridge as demand for lab space far outstrips supply. While tenant preferences will remain focused on Kendall Square, the lack of space and frothy pricing will push growth out along Route 2 and the Route 128 Corridor.
Vacancies in Cambridge’s premier lab market are still essentially zero. Although rates inched up to 0.5% in the first quarter of 2018, there is less than 50,000 square feet of vacant space in East Cambridge. As has been the trend over the last two years, any available space is quickly leased up here — in many cases through off-market deals. There doesn’t seem to be any clouds in East Cambridge’s forecast. Expect tenants to struggle to find space to accommodate their growth as tight fundamentals and higher rents will continue to characterize this market in the near-term. While overall rent growth has slowed, lease rates on higher-end space are now in the low-$90s on a per-square-foot basis.
Get the complete rundown of Greater Boston's life science market in our Q1 Biotech Beat.