Q4-2017-Biotech-Beat

CAMBRIDGE LAB

ASKING RENTS

ASKING RENT ($/SF)

ASKING RENT ($/SF)

CLASS A

CLASS B

East Cambridge

East Cambridge

Mid $80's NNN

Mid $80's NNN

Mid Cambridge

Mid Cambridge

High $70's NNN

High $70's NNN

Mid $60's NNN

West Cambridge

West Cambridge

Mid $60's NNN

East Cambridge - Rents East Cambridge - Rents EAST CAMBRIDGE - RENTS $90

TRENDS

$90

$0 $10 $20 $30 $40 $50 $60 $70 $80

• Brammer Bio completed renovations on its 66,000-square-foot drug manufacturing facility (formerly Biogen space) in Kendall Square, which is now producing leading edge gene therapies. The firm also took over Biogen’s former distribution center in Somerville. • Limited availabilities and few rent observations have created some volatility in Cambridge’s recent rent data, which is not indicative of market health. Asking rents are still sky-high in East Cambridge, reaching $80/SF in the fourth quarter, and lease rates on the new construction, which are not included in current calculations, are above average as well. • Traditionally a relief valve for nearby East Cambridge, Sidney Street has evolved into a top-tier lab cluster in Mid-Cambridge. Anchored by BioMed Realty’s Sidney Research Campus, this corridor is home to 1.1 million square feet of lab space and tenants like Agios Pharmaceuticals, Blueprint Medicines and AbbVie, Inc. As of the fourth quarter, there are no availabilities here. This represents a marked change from just three years ago when vacancies were in the 30-40% range following Vertex’s relocation to the Seaport. • New lab developments are starting to lease up in Cambridge. Close to 60% of the nearly 1.8 million square feet of lab space currently under construction Cambridge is already preleased. With very few options available, tenants looking to expand in Cambridge will likely turn to new construction for their space needs. 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 Q4 4 1 2 15 2 0 3 15 4 5 1 2 3 4 6 1 2 2 3 Q4 2017

$20 $30 $40 $50 $60 $70 $80

$0 10

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Mid Cambridge - Rents Mid Cambridge - Rents ID AMBRIDGE - RENTS

$10 $20 $30 $40 $50 $60 $70 $80 $90

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90

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$0

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West Cambridge - Rents EST CAMBRIDGE - RENTS

NOTABLE TRANSACTIONS

TENANT

ADDRESS

SIZE

SUBMARKET

TYPE

$70

Agios Pharmaceuticals

Expansion/ Extension

88 Sidney Street

146,030 Mid Cambridge

$60

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

$50

Mass Innovation Labs

21 Erie Street

51,900 Mid Cambridge Expansion

$40

$30

Merck

320 Bent Street

46,418 East Cambridge Renewal

$20

$10

Rubius Therapeutics

Expansion/ Relocation

399 Binney Street

45,000 East Cambridge

$0

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Agios Pharmaceuticals

64 Sidney Street

27,083 Mid Cambridge Expansion

www.naihunneman.com

303 Congress Street Boston, MA 617.457.3400

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