225 Wyman St. Waltham

Greater Boston lab rents are rising by double digits, as the region retains its position as the nation’s top life science market, according to a new report by CBRE.

San Francisco, San Diego, New Jersey and Raleigh-Durham round out the top five in the brokerage’s life science clusters report.

Cambridge’s 13.6-million-square-foot lab market tops the region with average asking triple-net rents of $86.45 per square foot, followed by Boston’s $81.34 per square foot.

The Boston-Cambridge market continues to lead the nation in National Institutes of Health funding, receiving $2.4 billion in 2018, but New York is making gains. New York’s 52 percent growth rate of NIH funding is double that of Boston-Cambridge over the past decade, CBRE noted.

Massachusetts and California dominate the industry’s venture capital awards, receiving 74 percent of funding nationwide.

Developers are positioning sites in the Seaport District, South End, Somerville and inner suburbs as lab space, enlarging the industry footprint that historically has been concentrated in East Cambridge and a handful of suburbs.

Boston-based developer Bulfinch has broken ground on a speculative 270,000-square-foot lab building at Cambridge Discovery Park, seeking to tap into life science demand in the Alewife neighborhood.

Hobbs Brook Management is scheduled to break ground this spring on a 500,000-square-foot speculative office and lab building at 225 Wyman St. in Waltham.

After more than a decade of delays and disputes under previous ownership teams, the 45-acre site previously known as Northpoint site on the border of Boston, Cambridge and Somerville has emerged as a new industry cluster. Sanofi Genzyme leased 900,000 square feet to consolidate its local real estate at the 4.5-million-square-foot development owned by DivcoWest.

More recently, Cambridge-based Foundation Medicine has been scouting Boston and Cambridge for up to 1 million square feet of office and lab space for a new campus.

Since 2008, Greater Boston has added 12 million square feet of lab space, bringing its total inventory to 29 million square feet, according to the Massachusetts Biotechnology Council.

Boston Ranked as Top U.S. Life Science Cluster

by Steve Adams time to read: 1 min
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