Home to Harvard University and the Massachusetts Institute of Technology, Cambridge sits directly across the Charles River from downtown Boston and serves as the core of Greater Boston’s reputation as an intellectual powerhouse. These academic institutions, and the many research institutions that surround them, fuel the Massachusetts innovation economy and spawn Nobel Prize winners, high technology start-ups, and life science companies at an amazing rate. Cambridge may well be the most prominent life science market in the world, with local companies including Biogen, Millennium Pharmaceuticals, and Genzyme, as well as International firms such as Novartis occupying large facilities. Established technology firms, as well as venture capital, consulting, and a diverse array of other service firms also call Cambridge home to gain access to Cambridge’s highly educated workforce and unique urban culture. Submarkets within Cambridge are East Cambridge, the largest, Harvard Square, a niche but very desirable cluster around Harvard University, and Alewife Station/Route 2, which has developed around the Red Line MBTA station in West Cambridge.
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Declining market conditions due to job losses and protracted decision making by tenants continued in the second quarter. Private sector employment for the Greater Boston area declined by nearly 70,000 jobs in May year-over-year representing a 2.7% decline. Transaction volume in Cambridge was down nearly 50 percent compared to the second quarter of 2008 as most tenants not facing immediate lease expirations chose to delay real estate decisions.
Combined office and lab sublease inventory at the end of the second quarter was 470,670 square feet, approximately 16.6 percent of total vacancy. Although the supply of sublease space has increased by 13.3 percent from one year ago, sublease space offerings decreased slightly in both the lab and office markets over the quarter.
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LEASE
ITA Software
141 Portland Street
95,272 s.f.
Renewal w/ expansion
Cambridge Energy Research Associates
55 Cambridge Parkway
42,778 s.f.
Renewal
British Consulate-General
1 Broadway
14,503 s.f.
Relocation
Hagens Berman Sobol Shapiro, LLP
55 Cambridge Parkway
8,965 s.f.
Relocation
Eloqua Corporation
1 Broadway
5,527 s.f.
Sublease
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