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By one key measure, Boston’s lab market is in as rough shape as the pandemic-battered office market – The Boston Globe

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By one key measure, Boston’s lab market is in as rough shape as the pandemic-battered office market – The Boston Globe


Three years ago, in the depths of the pandemic, only around 1 percent of existing lab space in the region was vacant or available via sublease. Today, commercial real estate brokerage Colliers reported last week, that number is 21.5 percent, and vacancies are expected to grow in the coming months as more buildings open. For comparison, the availability rate for office space in Greater Boston is 22.7 percent.

There are fundamental differences between the lab and office markets — notably the fact that most lab work, unlike office work, needs to be done in person. But the sharp rise in lab vacancies is a stark reminder of how quickly fortunes can change for a hot industry, even a still thriving one like Boston’s biotechs.

The amount of Greater Boston lab space that is occupied by tenants has climbed by more than one-fifth over the last two years. But this wave of new construction and office-to-lab conversions means the amount of vacant space has climbed even faster, hitting an all-time high of 11 million square feet. And for lab landlords, the scene will likely get worse before it gets better.

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“We haven’t seen vacancies peak yet,” said Colliers research director Jeffrey Myers. “Once they start to turn the corner, it could take years … to get back to something we would consider more of a normal market.”

Several factors are driving the sudden shift.

Back when lab space was impossible to find, pent-up demand prompted many developers to bet on life sciences projects “on spec,” or without commitments from tenants. At the time, many local biotechs often took whatever lease they could find, sometimes renting considerably more than they needed. Meanwhile, money poured into the region’s biotech scene from venture capitalists hoping for a big payout, through an initial public offering, or from a sale to a much larger drug company, fueling demand for real estate. As a result, lab projects sprouted all over the region.

Now, many of those shiny new buildings are hitting the market — the amount of lab space in the northwestern suburbs along Route 128, for example, essentially doubled in the past five years. The small firms that took on more space than they needed are now looking to sublease some of it. The IPO machine has slowed considerably, as has the flow of cash from VC firms. And several significant players, including Takeda and Ginkgo Bioworks, have announced layoffs in recent months.

“It’s a correction from the sugar high we had during COVID when everybody was piling money into anything that said ‘life sciences,’” said Bob Coughlin, an executive at real estate brokerage JLL’s Boston office who specializes in lab deals.

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A former Tufts Health Plan building on Mount Auburn Street in Watertown has been converted to lab space, but leasing on these new projects has been slower than expected.Suzanne Kreiter/Globe Staff

The slowdown is evident all over Greater Boston. Myers rattled off a few examples topping 400,000 square feet in size, from the former John Hancock headquarters at 601 Congress St. in the Seaport that was renovated into labs but remains empty, to the former Tufts Health Plan headquarters in Watertown, also converted and empty. A similarly sized building just went up across from the Leader Bank Pavilion in the Seaport — also vacant. Lab plans have been shelved for a former auto dealership site in Needham and at the Riverside train terminal in Newton, while construction was even halted midstream on a lab building going up along McGrath Highway in Somerville.

Factor in the buildings that are under construction, and the region’s lab availability rate approaches 32 percent, according to JLL. In total, nearly 5 million square feet of labs opened in just the first six months of 2024 across Greater Boston, per JLL’s research, with only one-fifth of that newly built space already leased.

Empty floors even abound in the industry epicenter of Kendall Square. There was less speculative building in Kendall — most new buildings there are preleased to big tenants such as AstraZeneca, the Broad Institute, and Takeda. But Colliers notes a record amount of lab space is on the market now in Cambridge: 3.6 million square feet, most of it in or near Kendall.

Beth O’Neill Maloney, head of the Kendall Square Association, doesn’t sound worried. Kendall is as vibrant as it’s ever been, she said, and the empty space could allow more startups to expand there.

“It’s the normal ebb and flow as we build and fill, I’m pretty confident about that,” Maloney said. “Zero percent vacancy rate probably isn’t the healthiest for us. … The availability of some sublease space actually helps some early-stage companies grow here, thrive, and take root.”

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Advocates for the industry say the empty space underscores the need for the Legislature to pass an economic development bill that would allocate roughly $100 million a year for life sciences, essentially reauthorizing two previous rounds of state assistance. The House and Senate could not reach an agreement on the bill before regularly scheduled formal sessions ended for the year on Aug. 1. The Massachusetts Biotechnology Council sent a letter last week to legislative leaders, urging them to bring lawmakers back for a special formal session to pass the bill as soon as possible, as Governor Maura Healey has requested.

“My hope would be there’s a sense of urgency,” said Ben Bradford, a vice president at MassBio. “This is a great tool for the state to recruit companies or to keep companies here.”

Still, the sharp surge in vacancies has provided welcome relief to all the smaller biotechs that had been jockeying for space. Coughlin, the JLL executive and former head of MassBio, has been working through a planned vacation this week to keep up.

“I’m doing predominantly tenant work, and I’m as busy as I can be,” Coughlin said. “I don’t like being this busy in August, but I am.”

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The new Lilly Seaport Innovation Center, a 12-story, 346,000-square-foot building along Fort Point Channel, opened this week, a bright spot in the current market for life sciences real estate in that the building opened fully occupied.David L. Ryan/Globe Staff

Jon Chesto can be reached at jon.chesto@globe.com. Follow him @jonchesto.





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Boston, MA

Tim Walz speaks at high-paying fundraiser in Boston for his campaign

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Tim Walz speaks at high-paying fundraiser in Boston for his campaign


Tim Walz speaks at high-paying fundraiser in Boston for his campaign – CBS Boston

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The Democratic vice presidential nominee stepped into the Newbury Hotel without Vice President Kamala Harris to speak at a fundraiser for their campaign. WBZ-TV’s Mike Sullivan reports.

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Boston, MA

Boaters warned to give young whale hanging out in Boston Harbor space

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Boaters warned to give young whale hanging out in Boston Harbor space


Boaters warned to give young whale hanging out in Boston Harbor space – CBS Boston

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The whale could delay MBTA ferries in the area.

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Henry Lee, self-effacing savior of the Boston Public Garden, dies at 99 – The Boston Globe

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Henry Lee, self-effacing savior of the Boston Public Garden, dies at 99 – The Boston Globe


Mr. Lee, an unlikely hero in a development battle that remains a storied chapter in Boston history, died Monday night in Beverly Hospital of cardiac arrest. He was 99 and had divided his time between Beacon Hill and Beverly Farms.

For more than 40 years, he led the Friends of the Public Garden from its origins in a Back Bay living room to its pivotal role as a powerful guardian of Boston landmarks.

Having served in the US Foreign Service earlier in his life, Mr. Lee brought his diplomatic training to bear on negotiating with city and state officials to form private-public partnerships that protected the Public Garden and other green spaces.

And though he worked tirelessly to oppose developer Mort Zuckerman’s initial Park Plaza proposal, Mr. Lee was just as persistent at deflecting acclaim for his own efforts.

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“It’s not just modesty,” he told the Globe in 1995, adding that he believed it was “counterproductive” for him to be the focus of too much praise. “Many people work very hard for the Friends,” he said. “I do all the talking, and I get the credit.”

Mr. Lee did more than simply talk, however. During his presidency, he refused to take a salary and ran much of the operation from his home — even typing all correspondence as the organization expanded its activities beyond protection and upkeep of the Public Garden.

“He used to say, ‘We can either spend money on the parks or we can have an office,’ ” said Liz Vizza, his successor as president.

As president of the Friends of the Public Garden, Henry Lee sometimes personally injected a treatment into trees along the Commonwealth Avenue Mall to blunt the blight of Dutch elm disease.David L. Ryan/Globe Staff

As president, Mr. Lee sometimes personally injected a treatment into trees along the Commonwealth Avenue Mall to blunt the blight of Dutch elm disease. As president emeritus in his 90s, he’d stop by the organization’s office to let everyone know a park bench needed spiffing up or a plaque had slipped from its holder.

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“Henry’s combination of sweeping vision with incredible persistence and hard work to get all the little details right has transformed such an important part of how we think of Boston and how we interact with one of the most foundational spaces in the city,” said Mayor Michelle Wu.

Wu praised “the care and attention” he brought “to making sure everyone all across the city can experience beauty in their day-to-day lives and find that pop of color or calming presence. He devoted his life to making sure all of us would have that gift.”

Though born into a household of very modest means, Mr. Lee carried himself with a Boston Brahmin bearing, and his extended family was woven into the city’s history. Then-Governor Frank Sargent, who supported the original Park Plaza proposal, was a relative.

After graduating from Harvard College as a scholarship student and finishing graduate work, Mr. Lee spent several years in the US Foreign Service, which provided essential diplomatic training for his future civic work.

“Henry was a mentor and an inspiration to me and to so many of us in the parks advocacy world,” Vizza said. “He really taught me the true meaning of diplomatic advocacy.”

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In an increasingly acrimonious world, Mr. Lee wrapped in a blanket of polite charm his steely will to preserve history and places where anyone and everyone could gather.

“He would often say, ‘You can beat down the doors of City Hall once, but the next time you go they’re going to change the locks,’ ” Vizza recalled. “He knew that to succeed you had to work with people.”

Born in Boston on Jan. 13, 1925, Mr. Lee was the son of Henry Lee and Frances LeMoyne Lee. Though Mr. Lee, his oldest son, and his father shared a first name, none of them used Jr. or III to highlight which generation.

Mr. Lee’s father had been a stellar runner and equestrian steeplechase competitor, but injuries from riding kept him from holding most jobs. His mother had raised two children from a previous marriage in addition to Henry.

When Mr. Lee was a boy, serious ear infections left him so weak that doctors thought he wouldn’t live past 12. “I think he sort of put that forecast to shame,” said his son Henry of Brookline.

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Mr. Lee attended the Brooks School in North Andover, took a year off to work in Arizona earning money for Harvard, and then graduated with a bachelor’s degree. He also received a master’s in history from Stanford University.

In 1945, while a Harvard sophomore, Mr. Lee married Joan Cabot Metcalf, whom he had met at a party.

“Dad said, ‘If I didn’t marry her, I would have lost her,’ ” their daughter Karen of Portland, Ore., told The Beacon Hill Times earlier this year.

Joan Lee, a philanthropist who held behind-the-scenes roles in civic organizations, died in 2019.

Mr. Lee’s Foreign Service postings took him to Germany and Washington, D.C., before the family moved back to Boston in the late 1950s.

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He taught at Browne and Nichols School in Cambridge and was a teacher and administrator at the Dexter School in Brookline, which overlapped into the civic activism that made him a public figure as he turned to it full-time in retirement.

The Friends of the Public Garden currently has more than 3,000 members from 32 states and an annual budget of $3.6 million. Since 1970, the group has helped raise and invest about $50 million in funds for specific allocations, including maintaining trees and the upkeep of sculptures and sustaining other green spaces.

This year, the organization established the Henry Lee Fund for Boston Parks to honor his legacy of commitment.

Along with the Friends, Mr. Lee led organizations such as the Massachusetts Historical Society and the Charitable Irish Society and a host of other groups.

“I used to kid him: ‘Have you ever been in an organization you weren’t head of,’ ” said his son, a senior lecturer at the Harvard Kennedy School.

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Mr. Lee, his son said, “was my guiding light. He was the one who taught me where the bar is in life: ‘If you want to be a success, this is what you have to do to achieve it.’ “

A highly successful swimmer as a youth, Mr. Lee won numerous victory trophies, but into adulthood he kept only one — for a second-place finish.

“He was in lane seven and thought he was so far ahead of everybody else, but he forgot there was a guy in lane eight, who won,” his son said. “For his whole life he kept that trophy to remind himself that you cannot do anything without giving 100 percent.”

A service will be announced for Mr. Lee, who in addition to his son Henry and daughter Karen leaves another daughter, Eliza Schierloh of Beaumont, Texas; another son, Thomas of Seattle; 10 grandchildren; and six great-grandchildren.

“To a real extent his career began at 54,” Mr. Lee’s son Henry said.

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“When Park Plaza fell into his lap,” he added, “all of a sudden all these civic opportunities came his way and he made the best of them. When you walk through the Public Garden today, you look around and say, ‘A part of this is because of him.’ “

Despite all of accomplishments, Mr. Lee was unwilling to boast even a little.

“Although I have never amounted to much, I have had interesting careers in government, education, and numerous civic and historical endeavors,” he wrote in 1998 for the 50th annual report of his Harvard College class.

Though Mr. Lee worried mightily about national and world affairs, he focused his efforts locally — including improving a park that was a stroll away from his Beacon Hill home.

“It may be rationalization, but doing something effective in small compass has seemed in many ways more rewarding than grappling futilely with larger issues,” he wrote. “In all events, I have kept busy and out of trouble.”

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Bryan Marquard can be reached at bryan.marquard@globe.com.





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