A First: Innovation Office Set Aside
A new Cambridge zoning ordinance passed on Mondayrequires MIT as a developer of CRE to set aside 5% of its 1.2M SF, $1B development in Kendall Square for small, cost effective offices for start-ups and aspiring entrepreneurs, MITs managing director of real estate Steve Marsh (above) tells us. (It'sone of thefirst such laws in the country.)In exchange, the city will allow developers to build a bit more market rate space. MIT is all about the creation of knowledge and new ideas and seeks to serve the entire innovation continuum, from Fortune 500 companies to single entrepreneurs, Steve says.
With Cambridge office rents rising and the vacancy rate at 8.6%, MIT wants to make sure that small startups--many launched by Institute alums--arent crowded out, Steve added. To drive home the point, MIT is setting aside 10% of the space its planning for innovation offices that will be less than 200 SF, rented monthly. Its Kendall Square Initiative will undergo about 18 months more of permitting before construction starts on Phase 1. The master plan calls for retail, housing, offices and R&D space and will take seven to 10 years to build on four sites near the MBTA station in the square.