Small to mid-sized tenants need to seek the value play by looking along the Red Line corridor in Downtown Crossing, with rents ranging from the high $20’s to mid-$40’s PSF.
A recent Crains.com article notes, “Smaller companies, however, are feeling the squeeze. The problem is more acute for Boston’s booming biopharma industry than for tech companies…More than 96 percent of Cambridge’s 10.24 million square feet of lab space is occupied, according to an analysis by commercial real estate investor Transwestern.”
The E. Cambridge office market will continue to grow with a 454,000 square-foot project from Boston Properties. Currently that market is just under 12M Square-feet of Class A project with vacancy under 5%.
According to the Boston Globe, “the Cambridge Planning Board next month will consider Boston Properties’ designs for a 454,000 square-foot, 19-story, office building at 145 Broadway. It’s the first phase of nearly 1 million square feet of new development that Boston Properties is planning on land it owns along Broadway and Binney Street in the booming biotech district. Later phases include more office space and a large apartment and condo building that would reach as high as 34 stories.”
“This is the world’s first public trial of robo-taxi service,” said nuTonomy cofounder and chief executive Karl Iagnemma. “This is the start of what’s going to be a technology revolution.”
NuTonomy is providing the control software guiding the six taxicabs that debuted in Singapore, modified electric cars from French automaker Renault and Japan’s Mitsubishi. Each vehicle uses lasers and cameras to observe its surroundings and steer through Singapore’s business district. An engineer from nuTonomy was in the front seat, ready to take control if necessary, and a researcher in the rear monitored the cars’ computers.
In short, the Office market in greater Boston has rents continuing to surge upward with fewer available options. Kendall Square and select Cambridge neighborhoods lead the charge, with rents up 76% since 2010.
Kendall has enjoyed the most dramatic surge in rents during the present economic boom, currently going into its seventh year, as local rents bottomed out in 2010 following the mortgage recession. Other areas benefitting from current dynamics include most urban areas as well as the Western suburbs, including 9 West, buoyed by changes in Needham.
Vacancy remains at very low levels as 49,000 sf of positive absorption was balanced with 66,000 sf of new property completions, resulting in a slight vacancy uptick of 0.1 percent, to 5.5 percent.
The voice recognition technology in Amazon’s Echo is a key focus of the company’s Cambridge office…The high-tech brains that make it work come from [Rohit] Prasad’s team. He runs Amazon’s speech science efforts from the company’s Kendall Square office, overseeing the scientists, engineers, and data specialists who make the Echo something you can talk to.
The Echo is a critically acclaimed hit for Amazon. The canister-shaped device can turn on a smart TV, play your favorite album, or fetch the weather report, all by listening to your voice. And Amazon plans to add even more functions to its growing list.
MIT has presented their update plan for Kendall Square in Cambridge. Kendal Square is currently one of the hottest office markets nationally with record rents for Class A & B office space. Major tenants include Microsoft and Google.
The Kendall Square Initiative aims to create a vibrant mixed-use district featuring six new buildings on what are now MIT-owned parking lots in the East Campus/Kendall Square area, including three buildings for research and development, two for housing, and one for retail and office space. The plan will produce approximately 250 net new housing units for graduate students and approximately 290 new housing units for market use, more than 100,000 square feet of new and repositioned ground-floor retail, and nearly three acres of new and repurposed open spaces — in addition to providing research and development space in support of Kendall Square’s growing innovation district.
The Initiative was developed as a result of approximately seven years of internal and external dialogue. The Cambridge City Council approved new zoning for MIT’s properties in the East Campus/Kendall Square area in 2013, laying the foundation for the advancement of the mixed-use proposal.
The pilgrimage to Boston continues as Cambridge tightens; InsightSquared and Architectural Resources will soon call Back Bay home.
The BBJ notes, “Business analytics firm InsightSquared, which just last spring moved into expanded office spaces at 160 Second St., this September will move to a 45,000-square-foot office at 4 Copley Place. The office spans two floors and is almost triple the size of Insight Squared’s 16,000-square-foot Kendall Square location…The expansion is driven by InsightSquared’s growing customer count and revenue, a company representative said. The office will also accommodate the firm’s growing employee base, which has doubled to more than 150 in the past year.”
You can real the full Boston Business Journal report on its website, here.
The deal will enable Biomed to begin renovating the buildings. They include two lab and office buildings at 200 Sidney St. and 40 Erie St., with a total of 239,000 square feet, that were leased to Vertex through this December, and another 21,000 square feet at 21 Erie St. that was leased to Vertex through May 2017.
Biomed said it will update the buildings’ entrances and lobbies, and add indoor and outdoor collaboration spaces and fitness centers. The work will begin immediately and the sites should be ready to be leased to new tenants starting in September, the developer said.
The global hot spot for Bio Pharma space is Kendall Square in East Cambridge with 130 life sciences companies in 2.5 square miles.
“Of the top 20 pharmas I think probably somewhere between 50 and 75 percent have a presence in and around Cambridge,” said Joel Marcus, CEO of Alexandria Real Estate, the landlord with the biggest market share in the area.
“As tight as the lab market is in Kendall Square, the office market is even more tight, in part because Microsoft and Google are expanding their operations,” MassBio’s Abair said. At the same time though, he noted the proximity of tech and life sciences companies enable cross-industry collaboration.
“In 2015, we estimate we could move approximately $1 billion in pre-development projects into our active development pipeline,” CEO Owen Thomas said. “Before launching any of these projects, we need to complete the entitlement and planning process and, in most cases, some level of pre-leasing.”