Genzyme Corp., based in Cambridge, is one of the original life science giants.
Cambridge has long been known for its pulsating life sciences industry, home to more than 50 firms including biotech and pharmaceutical giants Genzyme Corp., Biogen Idec and Millennium Pharmaceuticals as well as the breeding ground for ideas from the Massachusetts Institute of Technology. With physical space running out, firms searching for large campuses are being forced to widen horizons and explore the Route 128 and Interstate 495 corridors.
“We’re seeing rates are up and availability is down in Cambridge,” said John Wiseman, vice president of leasing for the Woburn office of Cummings Properties, which serves 10 communities around Boston with over 8 million square feet of space. “[We] have a lot more people considering the suburbs … Larger developments continue to be found in places where more [there is] more availability of land,” he added.
With the onset of suburban expansion, Cambridge is still flourishing with the market remaining strong. Many firms, such as Schering-Plough, a Kenilworth, N.J.-based science medicines and services firm, in the Cambridge market are expanding and upgraded their existing facilities. “The [life sciences] market is definitely dominated by Cambridge,” said David Begelfer, director of National Association of Industrial and Office Properties Massachusetts chapter.
“[The city] has approximately 7.5 million square feet of biotech space Â… Vacancy rates [have been] dropping over the last few years; they are under 9 percent [and] fairly healthy. Unfortunately, a lot of the vacant space happens to be older [and] is lower-quality space. High-end quality lab space is a very tight market right now. If you’re looking for 30,000 square feet of space, it’s very tight [and] will remain tight until mid next year. Rents are up [too], with rates at high-end [spaces costing] $460 per square foot, with an improvement package of $100 to $150 per square foot.” said Begelfer.
Looking Ahead
Next year several life science oriented developments will open in Cambridge including a 400,000-square-foot development by Lyme Properties, which Begelfer says will give the area a “good chunk of new space,” and a new building that will house the Center for Cancer Research and related bioengineering laboratories on the MIT campus. “Pharmaceuticals are really driving the market at this point,” said Begelfer.
“As Cambridge gets more lab space on line, [the number of firms locating there] will pick up again,” said Wiseman.
“There are a couple of challenges [when trying to locate to Cambridge], some of the larger firms like Abbott [Laboratories] are looking for larger campuses [and] there aren’t a lot of these spaces available in urban settings,” said Wiseman. “There tend to be a lot of good options out here; there are a lot of single-story buildings out here to make into lab space. Life science firms are becoming more comfortable coming to the suburbs: Lexington, Woburn and Beverley,” he added.
Still with Cambridge grasping tightly onto its image as a life science haven, companies such as Cummings Properties have to work vigorously to promote the development of new life science organizations. “We’re working hard with local universities and clubs to try and encourage the formation of new life science firms. We are [also] working with the Massachusetts Biotechnology Council to help encourage firms to come,” said Wiseman.
Wiseman says that they have been experiencing successes with vacancy rates a little less than six percent and new firms arriving. “BioVex, [a biotechnology company] recently got 30,000 square feet with us. They did a pretty comprehensive search in North America and selected Woburn,” he said. “[Firms such as] Biotrove and US Genomics [are] continuing to grow in the suburbs.”
With the future looking bright for life sciences in the suburbs, Wiseman says, “We are ahead of the last couple years [and] we are cautiously optimistic that it will continue to improve.”
Local vs. National
When comparing the accomplishments and successes of Massachusetts against other big life science orientated states, Begelfer finds some challenges arise. “It’s hard to compare to other states, everyone’s looking for biotech [and] we are one of the top states in the country,” he said, “with some [states] we just don’t compete. We research very well, but the manufacturing is located elsewhere, the state is looking to becoming more receptive to manufacturing.”
The main problem that faces biotech manufactures in Massachusetts is the cost of the permitting and amount of time it takes to acquire such permits says Begelfer. Communities across the state are looking to try and pass a permit streamlining bill which will speed up the permitting phase and lower costs to businesses.
In Fort Devens, Bristol Myers Squibb’s million-dollar manufacturing plant is “a good example of manufacturing and fast-track permitting coming to Massachusetts,” said Begelfer. Bristol Myers Squibb was brought to the state in large part by the efforts of the Business Resource Team, started in 2004 and led by Secretary Ranch Kimball of the Office of Economic Development and Gov. Mitt Romney. The arrival of Bristol Myers Squibb represents the 219th significant victory for the BRT.
Along with the fast-track permitting, the BRT showed Bristol Myers Squibb how strong the work force is in the state and easy the logistics of such a move could be. “Bristol Myers Squibb were attracted by the strong work force and the number of universities and colleges, they understood they could tap into the right people for manufacturing jobs.”
Massachusetts, with the help of fast-track permitting and the influx of manufacturing firms, could transform from a largely research and design based life science environment into a state that offers the whole package.
