Short on time? Here are the highlights of our third quarter Cambridge Office & Lab MarketView. To request the full report, fill out the form at the bottom of this post.
- Cambridge is not most markets. With vacant space so scarce, existing tenants that want to grow and remain in Cambridge are having difficulty accommodating a growing workforce. As a result, some landlords have taken the unprecedented step of encouraging smaller tenants to leave, so that their larger neighbors can expand within the building.
- Asking rents for Cambridge office space continued to tick upwards, continuing their habit of setting a new historic mark each quarter.
- Despite the lack of available office space, companies with a Cambridge presence are loath to look outside their current locations for additional space as evidenced by the largest two leases of the quarter which were both expansions by in-market tenants.
- While lab rents dipped slightly this quarter for the first time in two years, that doesn’t mean it’s getting any easier to find space – rather, it’s indicative of the fact that the only spaces left are smaller and of lower quality.
- The vacancy rate for lab remains low, at 3.0%, and more than a third of that empty space has already been committed.
- The negative quarterly absorption of 92,600 sq. ft. in the lab market was almost entirely due to a single sublease space that hit the market in the form of the ARIAD availability at 125 Binney Street. That trend can be seen market-wide, with sublease spaces being much more common to come across than direct, driven by existing tenants’ reconfigurations.
- As the Cambridge lab market continues raising the ceiling, everyone outside the city is waiting with open arms for those tenants who either can’t afford to be in Cambridge, or can’t find the space they need.