Demand for lab space remained strong in the second quarter, with asking rents in downtown Boston rising 8 percent in the second quarter.

CBRE reports that life science industry growth contributed 78,000 square feet of positive absorption in downtown Boston, as asking rents topped $82 per square foot on a triple net basis.

Demand continues to outpace availabilities in the industry hub of Cambridge. Life science requirements rose from 1.4 million square feet in January to 1.9 percent in June, CBRE reported.

“While lab users may be reevaluating how much office space is needed within their premises, lab space continues to be a necessity for all these companies, as lab work cannot take place at home,” the report states.

The suburban lab market had just under 22,000 square feet of positive absorption during the second quarter, with average asking rents of $48.57 per square foot, according to CBRE’s second-quarter market report.

Much of the activity is concentrated in inner suburbs, which have benefited from spillover demand because of low vacancies in Cambridge.

Biomanufacturing is expected to increase in the suburbs because of increasing demand for domestic life science facilities, as illustrated by Thermo Fisher Scientific and Brammer Bio’s purchase of a speculative warehouse at 5 Commerce Boulevard in Plainville for conversion into a manufacturing facility, CBRE said.

“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,” CBRE Vice Chairman Steve Purpura said in a statement

Report: Boston Lab Rents Rise 8 Percent

by Steve Adams time to read: 1 min
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