From the baker’s dozen and beyond, volume discounts have always been a staple of the business world, but companies looking for office space in Cambridge these days had better be prepared to pay the full freight, no matter how large their requirement.In the latest indication of the 11 million-sf market’s strength, a lease being negotiated at Technology Square in East Cambridge will reportedly top the $60 per sf mark, even though the tenant is reportedly seeking upwards of 150,000 sf. Whereas such record rents have previously been reserved for smaller deals in boutique spaces, the lure of Cambridge is apparently sending rates into the stratosphere for all deals.

“It’s just a pure supply/demand dynamic,” says Insignia/ESG broker Daryll Morse. “You’ve got companies that need to be in Cambridge, and they are willing to pay more to be there.”

According to sources, Atlanta-based iXL is in late-stage negotiations to take nearly all of Building 300 at Technology Square. Now under construction, the 175,000-sf building is one of four that owner Beacon Capital Partners is planning to develop at the park, acquired by the company in 1998 for $123 million.

“That’s the buzz on the street,” says one broker familiar with the iXL deal. The source agrees that companies would normally exact a discount out of such a large lease, but says Cambridge owners are simply in too strong a position for that to occur. Because his company is exclusive leasing agent at Technology Square, Morse declined comment on the iXL lease, but he does acknowledge that there is at least one 100,000-sf deal in the market that will command “north of” $60 per sf. “That really is right on the mark,” says Morse. “You can throw out the window anything that’s happened before.”

If consummated, the iXL deal would demonstrate the dramatic rent escalation that has taken place in Cambridge during 2000. Morse says Insignia/ESG’s own figures had average rents between $35 and $45 per sf at the beginning of the year, but adds that has since bumped up to the $50 to $60 per sf range. The Cambridge market has a vacancy rate under 2%

Calls to Beacon and iXL were not returned by press deadline.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.