January 21, 2020
Metro Boston experienced a year-over-year increase of 8% in life sciences employment through the third quarter, NKF’s Liz Berthelette reported, citing data from JobsEQ by Chmura. That led to the second consecutive year of absorption exceeding one million square feet for lab space, and the market ended 2019 with 5% vacancy, a new low.
“With Cambridge seeing full occupancy over most of the past five years, more companies are being forced to consider fringe and suburban locations,” Berthelette wrote. “Markets outside of Cambridge accounted for more than 70% of annual net absorption, but expect the pendulum to shift back to Cambridge as several new projects reach completion and more enter the pipeline.”
Demand across the metro area isn’t likely to abate anytime soon. A recent report from the nonprofit Massachusetts Biotechnology Education Foundation found that life sciences employment in the Bay State is projected to increase from approximately 74,000 in 2018 to 86,000 in 2024.
Pictured: Alexandria Real Estate Equities’ 100 Binney St. in Cambridge.
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