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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