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Why Cambridge Biotech Will Stay In Demand

Uncertainty about the future might be the prevailing emotion nationally at the end of 2016, but that doesn't apply to the Cambridge biotech market. The market's hot, and it's going to stay that way in '17.

Bisnow

"We're seeing continued robust demand for space in and around Kendall Square, Rogers Street and across Cambridge, with companies recognizing this high demand and securing space where they can grow for many years to come," says BioMed Realty SVP of East Coast leasing Bill Kane (snapped here at a Bisnow event). Eight of the top 10 life sciences firms, by market cap, have a major presence in the Boston area. (The two holdouts are Novo Nordisk and Roche.)

Recently, Shire Human Genetic Therapies, a subsidiary of Shire Plc, inked a deal to become the anchor tenant of BioMed's 500 Kendall St in Kendall Square, taking 343k SF for 12 years. The biotech company, which focuses on rare diseases and other highly specialized medical conditions, will move into the building by early 2019, shortly after the lease expiration with the current tenant.

Courtesy of Transwestern
The life sciences building at 500 Kendall St. in Cambridge, Massachusetts

Taking space at 500 Kendall St is the next step for Shire's expansion of its Rare Disease Innovation Hub within Kendall Square, says BioMed president and CEO Tim Schoen. Shire also occupies 206k SF at BioMed Realty's 650 East Kendall St building.

Lab space is tight in East Cambridge/Kendall Square in particular, with a vacancy rate of 5.9%, according to Transwestern. Formerly known as Genzyme Center, 500 Kendall St was designed by architect Stefan Behnisch and built as Genzyme's HQ. The company has been there for the last 12 years. Transwestern brokered the lease between BioMed and Shire.

Curious to hear more about the outlook for Boston in '17? Come to our Boston 2017 Forecast on Dec. 15 at the Westin Boston Waterfront, which will feature such speakers as Meredith Management Corp's John Rosenthal, Samuels & Associates' Peter Sougarides, and KIG Real Estate Advisors' Justin Krebs. Sign up here.

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