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3720-To-One t1_j56j3ew wrote

Reply to comment by 88stardestroyer in Five-building residential and life-sciences complex with a museum could rise on long vacant parcel on Tremont Street across from police headquarters by rabblebowser

For real. How much lab space is needed?

Seems like they are constantly building new labs.

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downwardspiralstairs t1_j56mjxo wrote

Private equity loves lab space because it rents out at a higher rate than an office space because a person can't do lab work from a home office.

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3720-To-One t1_j56mut2 wrote

Right… but how much lab space is actually needed?

If you can’t find tenants, seems like a money sink.

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ThatFrenchieGuy t1_j56yjcb wrote

An absolute shitload, there's a multiyear wait for more space right now because COVID caused us to make so many huge breakthroughs in biotech that are all moving forward at the same time.

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RoaminRonin13 t1_j5715e9 wrote

As much as private equity will finance.

We’ve had companies leasing and fitting out lab space they don’t have the staff to fill for years. They lease space in a new building based on the investment money they’ve received and their hopeful projection of “maybe someday” growth. Then some amount of their space is either empty or gets sublet to a smaller start-up.

At this point labs aren’t really coming out of the ground without an anchor tenant - things are going on hold or dying outright, as the developers tighten up and wait to see what 2023 brings. There are still tenants looking for space, tho - life science is a thriving industry in Boston, and you can’t do lab work at home.

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hmack1998 t1_j56nqkq wrote

Lots because biotech is rapidly expanding and new companies are needing more and more space

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88stardestroyer t1_j56twc5 wrote

Are you stuck in 2021? Biotech is certainly not crashing down, but some R&D had been fired and many large companies have hiring freezes in place

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RoaminRonin13 t1_j5726br wrote

Sure, but some others are still looking for space.

The developers don’t want to spend money in 2023 unless there’s a tenant, and plenty of companies are tightening their belts or seeing investment streams dry up. But others, like some institutional tenants, are planning for 2024 and beyond in terms of their space needs.

I don’t disagree with you that the book may be over, but you’re right that it isn’t crashing either. Life-science has dramatically cooled in just the last 4-6 months. We’ll probably not have a good sense of how things look until 6+ months from now.

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88stardestroyer t1_j576459 wrote

Mostly agree. For me, there won't be expansion in this sector, like many others, until the FED cuts interest rates. Could be well into 2024

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3720-To-One t1_j56ph5a wrote

But of course NIMBYs won’t let enough housing be built.

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BabyLegsOShanahan t1_j56pi02 wrote

But so many are empty.

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hmack1998 t1_j56t666 wrote

What empty lab space is in Boston/Cambridge/Somerville?

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BabyLegsOShanahan t1_j56uhlb wrote

Assembly Row for one and plenty in downtown Boston. My company was looking to get out of their lease in assembly but the market sucks, no one is looking to buy/rent.

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Chippopotanuse t1_j5a0nz1 wrote

If you prefer blighted storefronts, a stagnant economy, and a raging drug crisis - may I interest you in either a time machine so you can go back to 1970’s Boston?

More lab space is simply a function of a science and tech based workforce that Boston has (and that workforce is a function of all of the world-class colleges, universities, and hospitals that Boston has).

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3720-To-One t1_j5b9rz5 wrote

I’d prefer more housing

If you haven’t noticed lately, we have a serious shortage.

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