Q4-2017-Biotech-Beat

Q4

CAMBRIDGE LAB

2017

TOTAL INVENTORY (SF)

TOTAL VACANT (SF)

TOTAL VACANCY RATE

Q4 NET ABSORPTION (SF)

YTD NET ABSORPTION (SF)

ASKING RENT NNN ($/SF)

East Cambridge

9,311,288

18,053

0.2%

(9,517)

558,494

$80.00

Mid Cambridge

5,262,211

47,424

0.9%

52,383

(16,167)

$76.77

West Cambridge

783,180

72,632

9.3%

(10,327)

(35,132)

$57.80

TOTAL

15,356,679

138,109

0.9%

32,539

507,195

$72.06

Vacancy and Net Absorption

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

12%

1,175,000

TRENDS

VACANCY AND NET ABSORPTION Vacancy and Net Absorption

10%

975,000

• Year-to-date absorption of more than 500,000 square feet helped push vacancies below 1% in the Cambridge lab market. Demand, driven in part by strong venture funding and a rash of IPOs, remains frothy here. The lack of space in Kendall Square is staggering, with vacancies in East Cambridge at just 0.2% in the fourth quarter. • Mass Innovation Labs executed three new leases in the fourth quarter; including a 52,000-square-foot deal at 21 Erie Street in BioMed Realty’s Sidney Research Campus. • Rubius Therapeutics expanded again as well. After executing a sublease at 99 Erie Street last quarter, the firm plans to anchor Alexandria’s project at 399 Binney Street when it delivers later this year. • Agios Pharmaceuticals is increasing its Cambridge footprint significantly; expanding near Central Square. The biotech company signed a new lease for 27,000 square feet at 64 Sidney Street and expanded/extended its lease at 88 Sidney Street. • Synlogic inked a deal for a new 41,000-square-foot headquarters at 301 Binney Street, which will triple its space and bring the firm closer to Kendall Square. • New biotech companies continue to launch in the ever-tight Cambridge market. Most recently, UK-based RxCelerate established its U.S. operations at One Broadway. Janpix nabbed $22MM in funding and has also opened an office at One Broadway. • Moderna is giving back a full floor at 320 Bent Street and Ensemble Therapeutics recently shuttered its doors at 99 Erie Street. While Novartis also put 100,000 square feet on the sublease market, a large chunk of this space is already committed; highlighting just how hot the Cambridge lab market is. 21 Erie 200 Cambridgepark 325 Vassar 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

12%

1,175,000

8%

775,000

10%

975,000

6%

575,000

8%

775,000

4%

375,000

6%

575,000

2%

175,000

4%

375,000

0%

-25,000

2%

175,000

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016 Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

0%

-25,000

Net Absorption

Vacancy Q1 2017

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q2 2016

Q3 2016

Q4 2016

Q2 2017

Q3 2017

Q4 2017

Net Absorption

Vacancy

Recent Construction RECENT CONSTRUCTION Recent Construction

1,200,000

1,200,000

1,000,000

1,000,000

800,000

800,000

600,000

600,000

400,000

400,000

200,000

200,000

0

0

Q1 2015

Q3 2015

Q1 2016

Q3 2016 Q3

Q1 2017

Q3 2017

Q1 2018

Q3 2018

Q1 2019

Q3 2019

Q1 2015

Q3 2015

Q1 2016

Q1 2017

Q3 2017

Q1 2018

Q3 2018

Q1 2019

Q3 2019

Leased Available sed Available

CONTIGUOUS BLOCKS

3

2

Contiguous Blocks

Contiguous Blocks 1

No. of Blocks

0

15,000 SF-25,000 SF

25,000 SF-50,000 SF

50,000 SF+

4