Lab Tenants Fuel Build-to-Suits
Although market conditions in the Cambridge lab market have been relatively quiet, there has been some activity from firms looking to make Cambridge their research base. The first large deal of the year in Cambridge was The Broad Institute, which will be headquartered at the 170,000 square foot build-to-suit project to be constructed at 7 Cambridge Center.
After a long search process, The Smithsonian Astrophysical Observatory recently agreed to terms at Discovery Park (formerly Acorn Park) for a roughly 120,000 square foot build-to-suit. This transaction is in its preliminary stages with no firm occupancy date yet established. The Smithsonian Astrophysical Observatory will be relocating from its current location in Cambridge.
The Smithsonian Astrophysical Observatory is a research institute of the Smithsonian Institution, which is headquartered in Cambridge. It is joined with the Harvard College Observatory to form the Harvard-Smithsonian Center for Astrophysics (CfA). More than 300 scientists at the CfA are engaged in a broad program of research in astronomy, astrophysics, earth and space sciences, and science education.
In a market where the majority of lease transactions in 2004 have been smaller than 15,000 square feet, it is a good sign for the Cambridge market that some of the large tenants in the market have begun to move forward on their transactions. Statistically, these recent leases will have no effect on the current market conditions since they will be occupying new buildings, which are not tallied in the market’s current vacancy square footage. They will count as positive net absorption when their buildings are completed and they begin to move in, which will be in roughly two years.
