Lab Tenants Get 180,000-SF Space Option

CAMBRIDGE, MA-Laboratory space at discount prices in Cambridge is a formula not very often found in one of the country’s hotbeds of life sciences research, but that is precisely what One Kendall Sq. is offering as 180,000 sf of supply comes to the market. The owner of the eclectic commercial complex, a partnership of the Beal Cos. and Rockwood Capital, has retained DTZ FHO Partners to market the space coming available as long-time tenant Genzyme Corp. moves tenants to other company buildings.

“It’s a bit of a competitive advantage,” DTZ FHO Partners principal Duncan Gratton concurs in estimating the rental rate to be in the mid-$40s to $50-per-sf range, a substantial drop from the average rate of $65 to $70 per sf seen for the limited supply of new laboratory space in the market. The One Kendall Sq. space is comparable in quality to first-generation product, says Gratton, who anticipates the opportunity will be well-received by the tenant constituency.

“It should appeal to a lot of companies,” he says, especially as escalating prices force some to consider alternatives outside the city. “Most firms in Cambridge would like to stay if they could,” says Gratton, who reports the fresh inventory will become available over the next six months. Both small and large lab requirements can be accommodated, he says, with about 60,000 sf of contiguous space in two connected structures, Buildings 600 and 700. Although most of the demand is expected to be organic, Gratton notes that the Cambridge allure can draw in prospects from just about anywhere.