Where will life sciences go to grow in 2016? - by Evan Gallagher

Evan Gallagher, NAI Hunneman

With the current imbalance of supply and demand for lab space, life sciences companies are in a tough spot when looking for space that meets their needs. In fact, with only 600,000 s/f of available lab space in Boston, Cambridge, Watertown, Medford, Somerville and Charlestown, companies are ready to make sacrifices in location when necessary. There is a group of emerging markets – along with an expansion in existing life science clusters – where companies can find a good deal; affordable space with state-of-the-art lab space.

There are several key factors that contribute to the emergence of these clusters, including the fact that companies want to be near other similar, existing like-minded companies. In towns where life science companies are already located, it’s also easier for property owners to get the necessary permits and approvals, since these towns have more experience and understanding of the process.  Life sciences developers are also incentivized to make an investment in buildings that are near similar developments to avoid the ‘needle in the haystack’ trap of real estate development.

Where exactly are these life sciences clusters forming? Here’s a breakdown:

• A lab cluster is forming in Waltham, with Boston Properties seen joining the life science development arena.

• In Lexington, Hartwell Ave. is a hotspot. Easily accessible off Rte. 2, talent from Cambridge is being drawn to the area – especially by placemaking, a theme being developed by King Street Properties, where a high-energy collaborative community is created with shared amenities that bring people together. This type of sophisticated design creates an atmosphere that is comparable to Kendall Sq.

• At One Patriot Park in Bedford, we’ve seen the conversion of a former flex R+D building into a state-of-the-art robust wet lab. The Longfellow Partners leadership team is new to the biotech development game in this market, and they have a ton of experience building labs in both Central and Kendall Square.

• In Woburn, a former research and development facility for one big pharma tenant is being converted into a multi-tenant biotech facility at 19 Presidential Way.

• The hottest projects in Watertown are the Linx Project off Arsenal St. and 65 Grove St. Both offer large blocks of space in an attractive location.

In a tight market, lab space in these emerging clusters and beyond is worth keeping an eye on this year.

Evan Gallagher, executive vice president & principal, NAI Hunneman, Boston.