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Greater Boston Life Science Report (Q1 2021)22 Apr 2021
Greater Boston life science market fundamentals remain as strong as ever in Q1. Cambridge, where just about half of the total inventory is concentrated, posted a 2.4% vacancy rate for the quarter. Cambridge has held a sub-3% vacancy for the last five years, causing emerging biotech clusters to form in surrounding areas such as Waltham, Watertown, Somerville, Seaport, Allston, and Fenway. This overflow trend began a few years ago and has gained momentum every quarter; in fact, most recent lab deals have come outside of Cambridge. While rents in East Cambridge have always commanded a premium due to its proximity to the top research universities, they are also ascending in the surrounding clusters due to the scarcity of supply. Developers are frantically seeking to satisfy this demand: a record 4.0 msf of construction is underway, with over 20 msf of additional development proposed.