Biotech Market Poised for Continued Growth

BOSTON-The state continues to be a focal point of the worldwide biotechnology market, states a recently released research report from Richards Barry Joyce & Partners. According to bioSTATus Q1 2004, the firm’s overview of the Massachusetts biotechnology real estate market, biotech lab buildings experienced 279,000 sf of positive absorption across Greater Boston for the two quarter period ending at the end of March of 2004.

The positive absorption is significant, the report indicates, as the previous two years experienced substantial negative absorption, most dramatically in the East and mid Cambridge submarkets. Vacancy rates still jumped 3% to nearly 20%, mainly due to the completion of the 290,000 sf building at 673 West Kendall St. in Cambridge and the repositioning of the former NECCO factory at 254 Massachusetts Ave. in Cambridge.

The increase in vacancies is also attributed to overcommitments of space taken by tenants in 1999 and 2000. But the report notes that the growth of a broad number of companies is a positive indicator for growth in demand for lab space.