Cambridge Sees Strong Demand for Lab and Office Space in 2005

"The Cambridge office and lab markets had another strong year in 2005," says Curtis Cole, senior vice president and partner of CBRE/New England, noting that more than 847,000 sf of net absorption occurred in the Cambridge submarket during the year. "We credit much of this to the fact that so many Cambridge-based companies are expanding and demanding more space, and the simple fact that Cambridge remains such an attractive location for the region's biotech and life sciences market."

More than 100 transactions were completed during the year, resulting in 255,000 sf of net growth for the Cambridge office market. Forrester Research's 125,000-sf renewal of office space at 400 Technology Square, Genzyme's 65,000 sf at 675 West Kendall and its 31,500-sf expansion at 55 Cambridge Parkway were among the largest transactions.

Net absorption of laboratory space for the year, meanwhile, totaled 592,000 sf with Genzyme's 150,000-sf lease renewal at One Kendall Square topping the list. Novartis also expanded by 75,000 sf at 500 Technology Square as did Schering Plough, which took 75,000 sf at 320 Bent St.

In addition to strong leasing activity, the report says the year also saw unprecedented investment activity in the Cambridge lab market with about 1.5 million sf of laboratory property changing hands. The largest transaction occurred when Lyme Properties disposed of a major portion of its Cambridge life science portfolio to BioMed Realty, which picked up the 1.1-million-sf portfolio for more than $530 million. BioMed also acquired the 90,000-sf Fresh Pond Research Park.