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A Cambridge-based drug manufacturer continues to trim costs, this time at the expense of highly coveted Kendall Square real estate.
Momenta Pharmaceuticals gave up a little more than 89K SF of office and lab space at 320 Bent St. in Kendall Square July 31, according to a filing with the Securities and Exchange Commission.
The drugmaker originally leased nearly 105K SF of office and labs in the building’s basement and first floor from landlord BioMed Realty Trust. It will pay a $3M termination fee as part of the deal.
It is unlikely the space will stay vacant for long. Kendall Square has had a 0% lab vacancy rate for several quarters, as the East Cambridge submarket remains the most-desired for life science companies wanting to be clustered together and in proximity to MIT and Harvard. Average Class-A lab rents have surpassed $100/SF.
There are no current Class-A lab availabilities in Cambridge larger than 5K SF, according to Perry data.
The space constraints have fueled a development boom, and Cambridge is on track to have 14M SF of lab space by 2021, double its inventory from 2006. The 2.1M SF lab construction pipeline is at its highest point since 2015 and is 69% pre-leased, according to Perry.
Momenta will continue to lease just over 15K SF for $94/SF beginning Sept. 1 (up from its current $84/SF), according to the filing. It also has an 80K SF headquarters nearby at 301 Binney St. The company lost $114M in Q2.
A Momenta spokesperson told Bisnow the company had no comment beyond a Friday earnings call that said the move reflects a company restructuring announced in October.
That 2018 announcement included a 110-employee layoff and plans to shift focus from developing generic versions of expensive biotechnology drugs to creating pharmaceuticals for immune-related diseases.
The restructuring is expected to save the company $250M over five years.
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