Life sciences, industrial offer ‘real opportunity’ for Boston real estate market decimated by coronavirus
The explosive growth of the life sciences sector amid the coronavirus and the real property it requires has captured the attention of commercial real estate investors and could be a “real opportunity” for Boston’s distressed market.
“The lab market, the life sciences market is still very strong and is seeing continual growth. It’s seen as a real opportunity for Boston’s economy,” said Aaron Jodka of Colliers International, which tracks real estate trends.
The coronavirus crisis has flipped much of Boston’s real estate market on its head when it comes to residential and office space. For the first time in years, it’s a renter’s market and landlords have been left scrambling to fill spaces as vacancies skyrocket.
It’s a trend that hasn’t held true in the life sciences or industrial markets.
These trends could be a harbinger of good news for Boston’s economy overall, Jodka said.
“They have higher salaries, bring higher rents, and more support for communities and schools. It has nice knock-on effects,” Jodka said.
Lab is a “choice” property, a recent Colliers report found. While Boston’s lab market cooled a bit in the second quarter, vacancies barely budged and rents set a record high.
Boston has established itself as a center for life sciences and has been been a boon for development in recent years.
Because of the specialized equipment life sciences labs carry and big investments behind them, Jodka said the industry as a whole has been insulated from economic hit from coronavirus.
The industrial market, too, is “rocking and rolling,” Jodka said.
The vacancy rate hit a 15-year low, dropping to 8.6% of all property in the second quarter. Rents hit an all-time high, eclipsing $10 per square foot even as development forged ahead, the report found.
from Boston Herald https://ift.tt/32ee5kB
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