Q4-2017-Biotech-Beat
BOSTON / SUBURBAN LAB
TOTAL INVENTORY (SF)
TOTAL VACANT (SF)
TOTAL VACANCY RATE
Q4 NET ABSORPTION (SF)
YTD NET ABSORPTION (SF)
ASKING RENT NNN ($/SF)
Boston
5,705,748
331,706
5.8%
3,849
8,412
$59.59
Suburban
7,147,040
637,195
8.9%
23,656
132,346
$37.87
TOTAL
12,852,788
968,901
7.5%
27,505
140,758
$46.20
10%
250,000
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
200,000
8%
150,000
6% VACANCY AND NET ABSORPTION
TRENDS
100,000
250,000
10%
50,000
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 • Biotech clusters continue to grow outside of Cambridge, with recent tenant demand targeting Boston Landing in Brighton, the Seaport, Watertown, and Bedford. • Mass Innovation Labs is betting big on Greater Boston; adding three new locations. Outside of Cambridge, the life science incubator recently inked a deal to anchor Related Beal’s Innovation Square development at 6 Tide Street in the Seaport and leased two floors in Boston Landing’s Auerbach Center on Guest Street. • With a tenant in hand, Related Beal has finally broken ground on the first phase of its 360,000-square-foot Innovation Square project in the Seaport. The 125,000-square-foot building is expected to deliver in early 2019. • The completion of MilliporeSigma’s new facility in Burlington, which includes lab and manufacturing space as well as its ninth M Lab Collaboration Center, brought several hundred life science jobs to the area. • Demand for new lab construction in the suburbs is heating up. LINX in Watertown landed two new tenants this quarter: AddGene and Macrolide Pharmaceuticals. Homology Medicines represents the first major user at Longfellow Real Estate Partners’ recently converted 1 Patriots Park in Bedford, and Visterra is taking down 27,000 square feet at Alexandria’s latest redevelopment project at 275 Second Avenue in Waltham.
4%
200,000
0
8%
2%
150,000
-50,000
6%
100,000
0%
-100,000
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
50,000
4%
Boston Net Absorption
Suburban Net Absorption
Boston Vacancy
Suburban Vacancy
0
2%
-50,000
-100,000
0%
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Boston Net Absorption
Suburban NetAbsorption
Boston Vacancy
Suburban Vacancy
Rents RENTS
$0 $10 $20 $30 $40 $50 $60 $70 $80
Rents
$0 $10 $20 $30 $40 $50 $60 $70 $80
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Boston Suburban
Q4 2014 RECENT CONSTRUCTION Q1 2015 Q2 2015 Q3 2015 Q4 2015
NOTABLE TRANSACTIONS
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000
TENANT
ADDRESS
SIZE
SUBMARKET
TYPE
Boston Suburban
Mass Innovation Labs
40 Guest Street, Brighton
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018
83,707 Boston
Expansion
Recent Construction
Homology Medicines
1 Patriots Park, Bedford
Route 128 Nortwest
Expansion/ Relocation
67,000
400,000 450,000
Recent Construction
Concert Pharmaceuticals Mass Innovation Labs
65 Hayden Avenue, Lexington
Route 128 Northwest
Expansion/ Relocation
55,522
400, 00 45 , 00
6 Tide Street, Boston
54,000 Boston
Expansion
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Leased Available
Route 128 West
Expansion/ Relocation
AddGene
LINX, Watertown
39,300
www.naihunneman.com
303 Congress Street Boston, MA 617.457.3400
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