One of the worst-hit life sciences submarkets in Greater Boston just landed a large lease.
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Mass General Brigham signed a 105K SF lease at Greystar's 74M lab building near Assembly Row in Somerville, the landlord announced Thursday.
It is the first tenant announced for the 469K SF lab development, which Greystar began construction on in 2022 and delivered two years later. The project marked the entry into the life sciences sector for Greystar, the country's largest multifamily developer.
“74M was expertly designed to support innovation and put sustainability at the forefront. As we see renewed demand for lab space across the region, we believe the building is well positioned to expand its tenant base with groups looking to attract top talent to the broader Assembly Square innovation hub,” Greystar Senior Director of Investment Management Matt DeNoble said in a statement.
MGB, which plans to consolidate its pathology operations in the building, also has rights for future expansion.
The lease is the latest expansion for the healthcare institution, which planted roots in the Assembly Row neighborhood in 2016. Then known as Partners Healthcare, the firm signed an 825K SF lease at 399 Revolution Drive.
In April, MGB secured an $866M financing package for its 482-bed Ragon Building expansion at its West End campus in Boston.
The Somerville lease is a promising sign for the submarket, which has faced challenges since the lab sector cooled off following its pandemic-era boom.
Several developers paused or pushed back planned life sciences developments in 2023 and 2024 as the market's vacancy rate soared.
A year after breaking ground on 74M, Greystar proposed a second 1.4M SF lab building at an adjacent site home to 99 Restaurant and La Quinta Hotel. The project hasn't started construction.
Activity has slowly started to trickle back to Assembly Row, with BioMed Realty securing a 500K SF lease from Transmedics in January at its Assembly Innovation Park project.
Last month, DivcoWest won approval for its 19-story, 120-132 Middlesex Ave. lab development from the city's planning board.
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