An improving economy is shifting concerns from whether growth in area biotechnology operations will resume to a more pronounced concern over being able to accommodate space needs in Cambridge, amid a constrained amount of supply.
Compared with the relatively quiet Boston and suburban office and lab markets, activity in the Cambridge lab market stood out during 2010. And the pace is expected to continue in 2011.
The Cambridge lab market showed tremendous velocity in 2010 and outpaced expectations going into the year.
The Massachusetts biopharma industry is coming off a year of growth in 2010, despite the economic climate, and is well-positioned for growth in 2011.
There are two misperceptions regarding the many life sciences jobs being created in Massachusetts. The first is that these jobs are all centered in Cambridge and Boston. The second is that these are jobs primarily for scientists in white lab coats.
Boston’s institutions of healthcare and higher education are the backbone of our economy. They are a steady engine of economic growth and a vital part of Boston’s innovation and creative sectors. Proximity to universities and hospitals, as well as a skilled workforce, are crucial for biotech companies looking for space. Even with the recent economic downturn, Boston offers companies access to all of these important resources and is still attractive to both large and small biotech/pharma.
The Worcester area is an emerging economic development engine within the biomedical industry due to its renowned academic resources, strong research capacities and quality medical and health care innovation and support.
A new study is predicting office rents in downtown Boston, Cambridge and along Route 128 North will increase in the coming months, driven by projected job growth and lack of supply in some areas.
The 2009 sale of Boston’s John Hancock Tower whetted investors’ appetites for an expected fire sale of commercial properties in 2010 that never materialized, while the 2010 sale of the iconic tower at a significant premium foreshadows a likely trend for 2011.
