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Mon, Aug 19
A Compendium of Property & Capital News
Aug 19
A Compendium of Property & Capital News

Extreme Supply Constraints for Bio-Tech/Lab Space Through Q1 in Green Report

April 09, 2019 - By Brendan Carroll - Perry Research
421 Kendall Square, Cambridge MA

BOSTON–In Perry-Sheer’s latest Green report, the Vacancy level of 1.5 percent depicts the extremely supply-constrained conditions for biotechnology-focused laboratory space as of the first quarter of 2019. The quarter may serve effectively as an ‘eye of the storm’ following Sanofi’s 902,000 sf lease at Cambridge Crossing, and two transactions, by Foundation Medicine and Sage Therapeutics, respectively.

Both of these are widely thought to be close to final execution and likely to combine for a similar in scale impact on demand. Despite 597,000 sf of completions last twelve months and a construction pipeline of 1.8 million sf, new completions are creating very short-lived opportunities for taking occupancy in spaces vacated by companies moving into their legacy locations. As demand shows no sign of slowing and traditional supply remains at critically low levels, a combination of suburban and urban sites are emerging as leasing successes and potential next frontiers for biotech clustering. Read the full Bridge report here.