Laboratory conversions are transforming Greater Boston’s real estate landscape, proving that demand for specialized lab space remains strong even in a post-pandemic era. The news that up-and-coming life sciences startup Prime Medicine will fill the former Sears location at the rapidly evolving CambridgeSide Galleria shopping mall should confirm to all doubters what we have long been preaching: no space in Greater Boston, especially in red-hot Cambridge, is safe from a lab conversion. The laboratory market is so tight in this area and tech space is at such a premium that developers are being forced to be more creative in what they can reimagine to be the workplaces of the future.
Why Laboratory Conversions Remain Strong Amid Remote Work Trends
This trend runs counter to the general narrative that physical office spaces have lost value. The Covid-19 pandemic pushed remote work to the forefront, but demand for lab space remains strong. While demand for traditional office space has cooled, the exception remains laboratory conversions. And indeed, many of our commercial real estate clients and contacts have confirmed that demand for their properties has cooled, driven by companies that —by choice or by circumstance— aren’t bringing their employees into the office anymore. But the great exception to this remains laboratory space. Why?
Put simply, many aspects of lab work rely on in-person equipment and collaboration that cannot be duplicated over Zoom. The experiments that fuel the biotech industry need highly specialized, physical spaces that Boston builders have become experts at providing. And the life sciences industry itself is booming, driven by investor appetite for not just pandemic treatments, vaccines, and tests, but a wealth of cures that the industry continues to churn out.
For developers, high demand and low availability signal one thing: tenants will quickly lease any building that developers convert into a laboratory in Greater Boston. These tenants will pay much more per square foot than any retailer, brewery or residential tenant they’re replacing. Smart developers should watch for underutilized properties near emerging biotech hubs. Cambridge’s Kendall Square hosts the most prominent biotech activity. Innovators are also conducting groundbreaking work in Boston’s Seaport District and in nearby suburbs like Somerville, Watertown, and Lexington.
With our real estate expertise, BG Strategies can help with bringing lab conversion property projects to life. For years, we’ve helped clients secure community and political support for tech and lab spaces across Massachusetts. Most recently, we assisted BioMed Realty in Cambridge. Our experienced team can guide your lab conversion through the rezoning and permitting process. We provide this support at a critical time in the biotech industry.