It was a stellar 2014 for the life sciences in Massachusetts, substantially exceeding the banner year of 2013.

Nowhere is the physical growth of the biopharmaceutical sector more apparent than in Cambridge. While the suburbs saw significant projects, including the move of Quest Diagnostics to and expansion of GE Healthcare in Marlborough and Genzyme growing its state footprint with additional space in Westborough, most of the action was in Cambridge. The year began with the completion of major lab and office projects for Biogen Idec in Kendall Square and Sanofi in Cambridgeport, continued with the launch of Pfizer’s new Main Street facility, and ended with Illinois-headquartered Baxter Healthcare announcing its lease of 200,000 square feet at 650 East Kendall St. 2015 will see the completion of the Alexandria Center lab complex on Binney Street and the huge Novartis complex on Massachusetts Avenue.

With substantial companies currently hunting for new or additional space and investment indicators revealing strength, 2015 will be another strong year for the life sciences in the region. Despite warnings of venture capital fleeing for other industries, 2014 proved otherwise.

With a rebounded Wall Street, the IPO appetite reached a zenith in 2014. In the biopharmaceutical space, 16 Massachusetts companies, from Akebia to Zafgen, had successful IPOs in 2014, blowing away the previous high-water mark of nine in 2013. Venture capital investments in Massachusetts-headquartered companies will approach a record $1.2 billion, with Blueprint Medicines ($75 million), Seres Health ($58 million), Civitas Therapeutics ($55 million), Syros Pharmaceuticals ($58 million) and Voyager Therapeutics ($45 million) among the leading recipients. A record seven new drugs developed by Massachusetts companies were approved by the Food and Drug Administration (FDA), including two new drugs each by Cubist, Biogen Idec and Genzyme, and one by Millennium, The Takeda Oncology Co. These new drugs treat conditions ranging from multiple sclerosis to hemophilia to complicated infections. On the medical device side, Ocular Therapeutix and Anika Therapeutics, both located in Bedford, had new medical devices receive FDA approval.

IPO activity will lessen in 2015, but not completely abate. Mergers and acquisitions were robust globally. In Massachusetts, while the abbvie-Shire deal evaporated, Merck’s acquisition of Cubist will happen. Cubist’s hard-earned success is exceptional, but we have many companies in Massachusetts following a similar pathway. The sheer number of such companies will sustain continued growth for the foreseeable future.

With continued growth, factors beyond the industry itself will increasingly determine where the actual physical growth will take place. Kendall Square is approaching build-out. Some vocal community activists would like to see the lab building boom ebb. Commuting times from the suburbs into Cambridge have escalated due to various road and bridge projects. Lab lease rates increased another 4.1 percent in the past 12 months, according to the most recent Cassidy Turley report, and now stand in the low $60s in east Cambridge. Where then will the additional growth occur?

Certain types of life science companies have always preferred the suburbs – research product companies, manufacturers, medical device and contract researchers. For early-stage research companies, the preference has always been east Cambridge.

Banker & Tradesman’s own Steve Adams recently reported on the increased interest of the tech community in second-tier office markets in greater Boston. The same will hold true for early-stage lab users. Increasingly, they will look for alternatives to Kendall Square – in Alewife, in Boston, the inner suburbs, and perhaps new destinations that are proximate to the Cambridge via public transportation and that offer urban experiences of their own. And, lab developers will light the way, adding such new markets to their portfolio.