CBRE: Life Science, Industrial Continue Strong Performance in Boston

The demand for lab and industrial space in Boston continues to grow, even as activity in the office sector shrinks due to the ongoing COVID-19 pandemic, according to CBRE’s recently released Greater Boston Office and Life Science Marketviews for Q2 2020.

The downtown Boston office market recorded a second consecutive quarter of negative growth with almost 930,000 square feet of negative absorption in Q2 2020. However, the downtown Boston lab market posted nearly 78,000 square feet of positive absorption while asking rents increased by approximately 8% quarter-over-quarter to $82.36 NNN. The greater Boston industrial market also experienced a strong second quarter, recording 218,683 square feet of positive absorption.

“Demand for quality lab space throughout the Greater Boston suburban submarkets remained strong throughout the second quarter, especially in the inner suburbs close to the major life science hubs in Cambridge and the Seaport District in Downtown Boston,” said Steve Purpura, vice chairman at CBRE specializing in the life science sector. “Prices in both Cambridge and Boston are reaching record highs, causing urban migration to slow and tenants to see value in suburban options. With an increase in US-based life science development and manufacturing, the demand for space is projected to outpace the current supply.”

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