But the expensive gamble appears to be paying off. Two tenantshave already signed long-term leases for space. Dyax Corp. ismoving and expanding their company from Kendall Square inCambridge, leasing 91,000 sf that they hope to occupy by the Jan.1. ToleRX Inc. another pharma company has just signed a 10-yearlease for 37,000 sf of space. Both companies are doing their ownbuild outs and an industry source tells Globest.com that lab-spacein Cambridge rents for around $60 a sf on a triple net lease.

The first floor of the 300 Technology Square building will haveabout 18,000 sf of retail space. Stephen Lynch, senior managingdirector of Insignia/ESG Inc., who represented MIT in thetransactions, tells Globest.com that though the remaining space inthe building is not yet committed "it is actively underconsideration."

The lab-space market in the Cambridge area remains strongbecause construction has not kept up with need in the area, largelyas a result of the Cambridge Zoning Board's rigorous andtime-consuming approval process. Lynch tells Globest.com thatdemand for lab-space is being driven not only by the localpharmaceuticals but also by national and international company'slooking to establish research facilities and headquarters in theCambridge area. It is this demand that MIT is anticipating with itsconstruction of a 258,000-sf research space next door to 300Technology Square to be completed by late spring or early summer of2002.