415,000-SF Office Park to Convert to Research Space

The park, which is being renamed Cambridge Discovery Park, is situated on a 27-acre site on Route 2 at the edge of the city near Arlington. In addition to its current square footage, the site is permitted for another 500,000 sf of development.

"This is the third largest development in Cambridge," John Varholak, a partner with Richards Barry Joyce & Partners and one of the lead brokers for the property tells GlobeSt.com. "The theory here is that there are very few redevelopment sites left in Cambridge."

He points out that Bulfinch is looking to redevelop the park as a hybrid of office, research and development and lab space that will cater to a variety of tenants. Part of the park's appeal will come from the fact that the average asking rent for the biotech space is in the high $20s per sf as compared with rates in East Cambridge that are in the $50 to $55 per sf range.

Varholak also emphasizes that tenants will get a Cambridge "address" in a suburban-like setting. "We are trying to compete with Lexington and Woburn," says Varholak, mentioning two of the suburban locations that have begun to attract biotech companies. Bulfinch also plans on dedicating 20,000 sf to 35,000 sf of space as an incubator for biotech start ups.

The park was previously owned and occupied by Arthur D. Little which had developed some lab space. But Varholek notes that the park can either build to suit space for larger companies looking to develop corporate headquarters in a campus like settings, or accommodate smaller research and development firms. Currently, Bulfinch is focusing on redeveloping two buildings--one that is 115,000 sf and the other that it 30,000 sf--to market to tenants interested in lab and research and development space.

According to Varholak, the park is currently 60% leased. Nuvera Fuel, which develops fuel cell technology, has just renewed its 60,000-sf lease for ten years. But the occupancy rate could drop this summer when Tiax, which leases 175,000 sf, needs to decide whether to renew its contract or move.

Varholak acknowledges that the lab market is starting to soften from its high in 2001, but he insists that there are still plenty of deals being done. He also points out that the park is well-positioned as lab space is just one of three components being marketed here. "We've had six showings in the past two weeks," says Varholak.