SAN DIEGO—Life-sciences real estate firm BioMed Realty Trust Inc. has recaptured roughly 313,000 square feet of space in Cambridge, MA—described as the most dynamic and valuable life-sciences real estate market in the world—as a result of Vertex Pharmaceuticals terminating its leases on three properties in this market. As a result of the lease terminations, BioMed will receive a $14-million termination fee from Vertex and will immediately begin to reposition the properties to meet the growing demand for lab space from new life-sciences companies in this core innovation district.

According to Bill Kane, SVP, leasing and development for BioMed, “This deal is a win-win for Vertex and BioMed Realty since Vertex can be relieved of these lease obligations moving forward, and we have great space to meet the growing life-sciences real estate demand in Cambridge. Tenants requiring 30,000 square feet to 100,000 square feet in Cambridge are struggling to find available lab space, and we see venture-capital and IPO activity driving aggregate demand for 1.3 million square feet of new lab space over the next three years in Cambridge. These three properties are well-positioned to allow us to capitalize on this demand at attractive rents.”

The three properties BioMed has regained include two laboratory and office properties at 200 Sydney and 40 Erie totaling 293,000 square feet, which had been leased by Vertex through December 2015. An additional 21,000 square feet was leased by Vertex at 21 Erie through May 2017. BioMed plans to improve the properties to update the entrances and lobbies, introduce indoor/outdoor collaboration spaces, add modern fitness centers with showers and deliver food service through new cafeteria or hired food trucks. The company will start work immediately, and space should be available for delivery beginning in September 2015.

Kane tells GlobeSt.com, “We have a great relationship with Vertex Pharmaceuticals, which allowed us to reach a win-win solution at 200 Sidney quickly and efficiently. As for the Cambridge market, we see continued demand for life-sciences real estate, particularly from midi-sized venture-backed companies who are seeking a multi-tenant environment with great amenities and peer-to-peer networking capabilities. Right now, this kind of space is hard to find in Cambridge, especially due to recent absorption from large users, like Baxter at 650 E. Kendall, and from the heightened competition within the office market. This transaction couldn't have happened at a better time for us and the Cambridge lab market.”

As GlobeSt.com reported last week, BioMed is in the midst of a realignment that will include a number of promotions and additions to its leadership team. President and COO Kent Griffin is leaving the firm to pursue other business opportunities, John Bonanno has been promoted to EVP of leasing and development and Jon Klassen has been promoted to EVP and general counsel. The two, along with Jim Berens, president of Wexford Science and Technology, will join the executive leadership team made up of Alan Gold, co-founder, chairman and CEO; Gary Kreitzer, co-founder and EVP; Greg Lubushkin, CFO; and Karen Sztraicher, EVP of asset management.

Earlier in February, as GlobeSt.com reported, Gold told us exclusively that life sciences companies are using modern creative space to attract and retain employees and provide an environment that fosters innovation. The firm had recently made news by revealing its fourth-quarter 2014 and full-year 2014 financial results, which showed strong performance and subsequent momentum into 2015 that resulted in the company raising the midpoint of FFO guidance for 2015 to $1.44 per share. BioMed has also broken ground on i3, a 316,000-square-foot life sciences development here in the UTC submarket.