Address Newsletter
Our weekly digest on buying, selling, and design, with expert advice and insider neighborhood knowledge.
Alexandria Real Estate Equities (ARE) executive chairman & founder Joel S. Marcus, joined by Whitney Snider, MD, vice president of science and technology for Alexandria Venture Investments, the venture capital arm of ARE, recently sat down with GEN Edge for an exclusive interview. The pair discussed the transformative impact of artificial intelligence (AI) on biopharma and on Alexandria in Part I.
In Part II of this interview, Marcus discusses Takeda Pharmaceutical’s recent decision to renew its lease and expand its space in Cambridge, MA; his perspective on Massachusetts’ proposed $1 billion extension of the Commonwealth’s bonding authority and tax credits to support life sciences industry growth; and Alexandria’s perspective on where biopharma will grow in New York City given its recent sell-off of a property in Long Island City, Queens.
This interview has been lightly edited for length and clarity.
GEN Edge: Alexandria recently announced an early renewal and expansion lease agreement with Takeda Pharma in Cambridge, MA. Why was Takeda pursuing an early renewal? And how did Alexandria help keep the company in Kendall Square?
Joel Marcus: Takeda is one of the top 20 pharmaceutical companies in the world, based in Osaka, Japan. Japanese companies have long-term thinking. They have made a decision, both in the past and now, to keep Cambridge as their worldwide R&D center outside of their home in Osaka.
As part of that plan, they came to us six years early and asked us, would we be amenable to tying down their current space in the Alexandria campus at Kendall Square, about 225,000 square feet, for a decade beyond the end of the current term, which takes it through 2040. This is unusual in a sense, but this is a Japanese pharma company wanting to ensure they’re in the world’s number one market for collaboration, certainly for recruitment and retention of the best scientists, and life science workforce, in the world. That was their strategic decision. And then they felt this building was particularly suited. They inherited this building through the acquisition of Ariad Pharmaceuticals and their oncology portfolio [in 2017 for $5.2 billion].
At the end of this lease—it was a 15-year lease that started in 2015—we re-set the rent at a higher rent than the natural ending rent in 2030. It’s then escalated for the next decade, and we end up with a very strong leasing stat as a consequence. And they get, essentially, the right to stay in their home through the year 2040. So, it’s a pretty big decision by them, and a wonderful outcome for us.
GEN Edge: Speaking of the leading market in Cambridge, Massachusetts Gov. Maura Healey (D) came out earlier this month with a proposed renewal of the Commonwealth’s life science initiative—an additional $1 billion in bonding and tax credits. How effective is that going to be in light of the two other such programs going back to 2008?
Marcus: I think anything is helpful. In all the markets, though, where the money really is needed—[I’m] in New York right now, and this is a great example—city and state money is better spent not so much on infrastructure tax credits, because private industry will bring the infrastructure. And remember, at the early stage, tax credits don’t do any good because you don’t have taxable profits.
The better use of city and state and other supportive money is to go into the founding and funding of early-stage companies so they can grow, hire a workforce, set up a base, and scale. So that’s always my criticism of governmental policy. It should be much more focused on supporting the companies. Tax credits just aren’t relevant for small companies, and infrastructure really isn’t needed, because the private sector is there to provide that.
GEN Edge: In Long Island City, Queens, Alexandria sold one of its properties (30-15 48th Avenue) to an entity of Cine Magic. Alexandria still owns a second property in Long Island City (30-02 48th Avenue). Why sell off one property? Is Alexandria rethinking the prospects of biotech in Long Island City?
Marcus: We were very hopeful when we bought our current site. And then the site we sold to Cine Magic. We were hopeful that Long Island City would turn out to be just a real boom opportunity. We bought those sites in the days just before Amazon announced they were going to Long Island City. Now we didn’t have any inside information, but our timing turned out to be really good.
But then, some of the political people in Long Island City, and some of the leadership who have been pretty negative on business expansion, killed the Amazon opportunity. Then you combine that with COVID-19, and it put Long Island City into a major economic reversal. We just haven’t seen the demand that we were hoping for, and that’s why we decided to recycle the capital in that one building. We still have one building that we’re in the process of tenanting. It has been very slow and painful, but we’re going to see it through.
GEN Edge: Does the West Side of Manhattan, as some developers believe—or the East Side, where Alexandria has its Alexandria Center® for Life Science campus—seem more appealing in terms of New York City biotech activity?
Marcus: I think the East Side Medical Corridor, where we have the first and only commercial life science campus, is still the heart of the ecosystem. There are a number of buildings around, but no real campus. The challenge in New York has been, during and post-COVID-19, is, one, continuing high state and city taxes. That has been a challenge for people to scale in the city. It isn’t a lack of infrastructure.
What’s really missing here, although we’ve made a huge dent—we’re the largest investor in New York biotech companies—there still has not been the kind of venture capital effort at the early stage here. It’s come a long way over the last decade, but it still pales in comparison to the Bay area, San Diego, or Boston, and that’s probably the most needed. If I was to say to the city, to the state, what’s most needed in New York, it would be risk capital for early-stage companies.
GEN Edge: Alexandria Real Estate Equities recently celebrated its 30th anniversary and its 25th as a publicly traded real estate investment trust. How is Alexandria looking to move forward in life sciences? And how will AI help shape that?
Marcus: I think if you ask people who are medical doctors and scientists by training, they’d say we’re still in the early days of innovation. The new advances—AI is just one example—the new modalities, whether it be cell therapy, gene therapy, the whole revolution in mRNA, and many other blockbuster technologies that are starting to emerge, give the industry great hopes for continued innovation.
The other side of that is, we need to be wary of political games that are being played by some in Washington. Sometimes it’s on the left, sometimes it’s on the right. This effort to try to get Medicare to fix drug prices for Medicare patients [the Inflation Reduction Act, criticized by industry leaders since its enactment in 2022 by President Joe Biden], I think at the end of the day will mean that there’ll be less innovative and novel drugs that are addressing the Medicare patient market.
We need to not fix prices or try to control prices. What we need to do, if you want to really impact pricing is, let the manufacturer deal directly with the end user and cut out the middleman right now. The middleman in the pharmaceutical industry is mostly PBMs [pharmacy benefit managers] and other entities that are taking 40–60% of the price of drugs. Imagine if we could eliminate that. You wouldn’t have to create a negative environment for drug discovery. So that’s what we’re hoping for.
GEN Edge: This is an election year. How much are PBMs and other issues affecting biopharma long-term concerns that will have to await the outcome of the election?
Marcus: The good news is there’s likely to be a split. The Republicans are likely to take the Senate. The Democrats are likely to recapture the House. Split government is usually the best government, because it’s balanced. That’s what we’re hoping for.
But what we need is people in Congress—it doesn’t matter what party—who are willing and committed to protect the innovation of this nation in the biomedical industry, which is the foremost industry in the world here, and not play around with governmental interference and go after the middlemen who are sapping the profits, the savings to the end user patient, and the ability to get a fair return on long term investment by the drug manufacturers and discoverers.
Governor Maura Healey said in a statement that she was “deeply disappointed” by the president’s decision and would keep fighting to secure federal dollars for Massachusetts.
“Our first responders, public works crews, and local communities worked around the clock to keep people safe and begin recovery,” she said. “They did their job, and now President Trump needs to do his.”
Climate advocates say the denial — which came on the same day that Trump rejected three other Democrat-led states’ requests for winter storm relief — reflects the administration’s politicization of disaster aid.
“Communities in Massachusetts and everywhere deserve a federal government that makes decisions for all people, and not just those that they perceive as having voted for them,” said Kate Sinding Daly, senior vice president for law and policy at the Conservation Law Foundation.
The president can declare a major disaster when a natural catastrophe is shown to have exceeded a state’s capabilities and resources. An analysis conducted by POLITICO in March found that it is three times harder for blue states than red states to get disaster funding under Trump.
According to the analysis, the president has approved just 23 percent of disaster funding requests from states with a Democratic governor and two Democratic senators, compared with 89 percent of requests from states represented by Republicans — an unprecedented discrepancy.
The analysis also found that Trump takes an average of 80 days to respond to disaster requests from Democrat-led states, compared to 39 for Republicans.
Abigail Jackson, a White House spokeswoman, strongly disputed that the Trump administration was politicizing decisions on disaster relief. She did not comment on why Trump denied Massachusetts’ request.
“President Trump provides a more thorough review of disaster declaration requests than any Administration has before him,” she said in a statement. She said the president was ensuring tax dollars were used by states “to supplement — not substitute, their obligation to respond to and recover from disasters.”
Former Washington governor Jay Inslee described the president’s approach to disaster aid as “outrageous, immoral, and illegal.” During Trump’s first term, the president reportedly ignored Inslee’s request for wildfire relief because of a personal dispute.
“He will consciously, willfully, and joyfully deny people aid who are at the most difficult moments of their lives,” said Inslee, who co-chairs the advocacy group Climate Power. “It is so infuriating to see an American president use disaster aid as a cudgel.”
The Healey administration announced in early April that it had requested a major disaster declaration for the February blizzard. It sought to reimburse state agencies and local governments in the southeastern part of the state for snow removal and other storm-related costs. The blizzard downed hundreds of power lines and trees, and nearly 300,000 people lost power at the peak of the storm.
Last week, Trump rejected disaster declaration requests from four Democrat-led states who had sought aid for the February storm: Massachusetts, Rhode Island, New York, and New Jersey. The president’s decision came just days after he approved aid for six Republican-led states.
“Trump is either politicizing disaster declarations or he is attacking states where it snows — neither is good,” wrote Senator Ed Markey in a social media post. “The February blizzard was costly for our communities, and Trump must approve the Commonwealth’s need for assistance.”
Senator Elizabeth Warren said a statement that the president’s decision was “cruel and makes clear he doesn’t see himself as a president for all Americans.”
“Communities in Massachusetts were hit by one of the worst storms we’ve seen in decades, and instead of sending a lifeline, the President is leaving everyday Americans out to dry,” she added.
Rhode Island officials also slammed the Trump administration for denying the state’s request. The winter storm hit the state with the intensity of a Category 2 hurricane. Providence had to cap spending for the rest of the fiscal year after record-setting snow.
The state’s congressional delegation — Senator Sheldon Whitehouse, Senator Jack Reed, Representative Seth Magaziner, and Representative Gabe Amo — wrote a letter calling on the president to reverse the denial. A preliminary assessment found more than $19 million in damages across the state, the letter said.
“You chose to leave Rhode Islanders out in the cold,” the lawmakers wrote.
Meanwhile, the president approved a major disaster declaration for the Mashpee Wampanoag Tribe in Massachusetts related to the February blizzard. (Federally recognized tribal governments can directly request a disaster declaration.)
Additionally, FEMA announced on Thursday that it had approved nearly $5.7 million for projects to reduce future disaster costs in New England, including more than $1 million for Massachusetts projects combating flooding.
Kate Selig can be reached at kate.selig@globe.com. Follow her on X @kate_selig.
Home Buying
If you’re in the market for a new build, you may be attracted to the modern floor plans, state-of-the-art technology, and resort-style amenities many of them offer. But you might not realize that there are financial benefits to buying new construction.
A recent report from Realtor.com found that buyers of newly built homes save an average of $25,335 over the first 10 years of ownership compared to buyers of 20-year-old homes. Those savings are even greater in Massachusetts, which topped the state-by-state list at savings of $38,927 over 10 years, due to the state’s strict building codes and harsh winters. Neighboring New Hampshire, Maine, Rhode Island, and Vermont rounded out the top five.
But in Greater Boston, where much of the new-home inventory consists of luxury condominiums, buyers still have to balance those long-term savings with higher upfront purchase prices and steep condominium association assessments.
Ryan J. Glass, vice president of Gibson Sotheby’s International Realty in Boston, said that in the first quarter of 2026, luxury full-service buildings citywide averaged approximately $1,698 per square foot, while many of Boston’s historic brownstone neighborhoods generally landed in the $1,200- to $1,500-per-square-foot range. That means that a buyer with a $3 million budget may be looking at 1,750 to 1,800 square feet in a new luxury tower compared to 2,200 to 2,400 square feet in a comparable renovated brownstone, he said.
Ellyn Hartmayer, 60, and her husband, John Hartmayer, 58, looked at more than 75 properties — both new construction and existing — before purchasing a 2,875-square-foot Back Bay condominium for $3.25 million in May. The unit has three bedrooms, three bathrooms, and a private terrace with views of the Charles River Esplanade. It’s located in a 10-unit building that was constructed in 1950. While the couple initially considered buying a new unit in a luxury high-rise because of the modern amenities, they “became increasingly focused on where the best long-term value was,” Ellyn said Hartmayer. After a lengthy search, they found a unique property in the Back Bay that offered everything they wanted: single-level living, extra space for their children to visit, elevator access, garage parking, and private outdoor space.
“The combination of a prime location, square footage, value, and potential ultimately outweighed the appeal of a newer building,” said Ellyn Hartmayer.
In Massachusetts, the median price of a new-build is 46.7 percent more than the median price of an existing home, according to Joel Berner, Realtor.com’s senior economist.
“If you buy a new home in Massachusetts, you’ll recoup savings over time because of the harsh climate and building codes,” Berner said. “But you will have spent so much more upfront that it may or may not actually break even.”
Builder concessions can even the playing field. According to a recent survey by the National Association of Home Builders, 64 percent of builders offered sales incentives, and 37 percent actually cut new-construction prices. Many are offering buydowns on mortgage rates as well.
“If you can only afford a $500,000 existing home, maybe in the new construction space, with the 10-year savings, builder concessions, and a mortgage rate buydown, you can afford $575,000,” said Berner. “Don’t just look at the sticker price. Look at your long-term monthly cash flow, and potentially you might have more wiggle room in your budget for new construction than you thought.”
Glass tells his buyer clients the same thing. “Consider which property is the better value for your budget, as well as the location,” he said. “Sometimes a market is saturated with new construction, so you can get a better deal on it. Other times, new construction is hard to find, and you can’t get as good a deal as you could on existing construction. Keep your options open.”
Some buyers also feel that the higher price of new buildings is justified by things like a concierge, a fitness center, or valet parking, Glass added.
Indeed, a newly built home offers some advantages:
It’s move-in ready. It’s new and has never been lived in. You’ll have new fixtures, new appliances, and you’ll receive a builder’s warranty to protect you, and won’t need major repairs for several years. “Today’s new homes are built better than ever,” said Ryan O’Rourke, division president for luxury homebuilder Toll Brothers in Massachusetts.
It will be built to the latest building code and will be more energy-efficient than an older home.
The insurance will cost less, assuming you don’t purchase on Cape Cod or another coastal area. “New homes have brand-new roofs, electrical systems, plumbing, HVAC equipment, and other major components that are less likely to fail and generate claims,” said Loretta L. Worters, vice president of the Insurance Information Institute. “By contrast, older homes may have aging roofs, outdated wiring, older plumbing systems, or deferred maintenance issues that increase the likelihood of claims and can result in higher premiums.”
Newer homes come with modern floor plans. Older homes can be dark with small rooms, while new construction will reflect current design trends (like open floor plans and kitchens with large islands) and the way people live now.
You can make it your own. Builders usually give buyers the opportunity to customize their new homes, choosing everything from the model and lot it sits on to cabinets, countertops, flooring, and appliances.
Our weekly digest on buying, selling, and design, with expert advice and insider neighborhood knowledge.
Max McColgan of Nashawtuc CC and Joseph Lenane of George Wright GC shared the Harry B. McCracken Jr. medal after finishing a rain-suspended second round of stroke play at 3-under-par in the 118th Massachusetts Amateur at Winchester Country Club on Wednesday.
McColgan and Lenane advanced into match play as the top two seeds, but only one of them advanced past the Round of 32. McColgan beat Dylan Greenwald of The Haven CC, 2-and-1, but Lenane fell to No. 31 seed Ricky Stimets of Barnstable Golf on the 19th hole of their match. Stimets will face Zachary Georgantas of Foxborough CC in the Round of 16 after Georgantas needed 21 holes to beat Joey Monahan at his home course.
Patrick Kilcoyne, who was the runner-up last year at GreatHorse, finished stroke play tied for third with 2024 champion Matthew Naumec at 2-under. Kilcoyne scored a 1-up victory over Winchester CC’s Jake Peer in match play, while Naumec won a thriller over Kyle Tibbetts in 22 holes in the final match of the day.
Elsewhere in the round of 32, No. 27 seed Maxx Zides finished 1 up over No. 6 seed Sam Grindle, while No. 24 seed Ben Spitz held on to finish 1 up on No. 9 seed Conner Willett as well.
Match play will continue on Thursday, with McColgan teeing off against C.J. Winchenbaugh at 7:30 a.m. in the round of 16 to start a busy day of action on the course. A 36-hole final is scheduled for Friday.
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