BioMed Realty has broken ground on its 600,000-square-foot 585 Kendall life science project in the Kendall Square neighborhood of Cambridge, Mass.
The building, also known as 585 Third St., has been preleased in its entirety by Takeda Pharmaceutical Co. Ltd. Reportedly the largest life science employer in Massachusetts, Takeda took a 15-year lease.
A dollar value on 585 Kendall was not disclosed.
Takeda already occupies space at 650 E. Kendall and will become that building’s sole tenant by expanding into two more floors there.
585 Kendall is scheduled for occupancy in 2026 and, in addition to 600,000 square feet of R&D and office space, the project will feature a 30,000-square-foot performing arts center, including a 400-seat theater, 150-seat commons stage set in an indoor garden, a rehearsal studio, and ground-floor gathering spaces. The building will pursue LEED Gold certification.
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The performing arts center will be launched in collaboration with Global Arts Live, a Cambridge-based nonprofit concert presenter with 30-plus years of experience showcasing music and dance from around the globe.
BioMed, a Blackstone portfolio company, has committed to spend $45 million to build and equip the performing arts center. The developer and Global Arts Live have created a new nonprofit 501(c)3 organization, 585 Arts Inc., and Global Arts Live will be conducting a $15 million fundraising campaign to launch and sustain 585 Arts.
Not easy at the top
Although the Boston-area life science market’s dominance endures and will continue, the current situation is mixed, with solid preleasing and nearly 1 million square feet of absorption in recent months contrasting with a rapid increase in overall vacancy and a rising inventory of sublease space, according to a third-quarter report from Newmark.
Sublease space now totals 1.4 million square feet, and leasing in the third quarter consisted mostly of smaller to mid-sized deals, Newmark reported. With scales shifting toward tenants, plus inflation and interest rates rising, the company stated, “Upwards of 80 percent of the 40 million square feet of proposed or permitted developments could be curtailed….”
In August, BioMed scored $514 million in construction financing for the first phase of its Assembly Innovation Park, a 485,000-square-foot life science project in Somerville, Mass.
