DivcoWest snagged a major pharmaceutical tenant for its sprawling mixed-use complex in Boston.
Bristol Myers Squibb has agreed to lease 360,000 square feet at the 4.5-million-square-foot Cambridge Crossing, according to Bisnow.
The complex is under construction on 43 acres at the borders of Cambridge, Somerville, and Boston. Bristol Myers signed a lease for the 250 Water Street building, which DivcoWest expects to complete in 2022.
The coronavirus pandemic has wreaked havoc on a wide range of real estate sectors, but not surprisingly it’s fueling interest in the pharmaceutical sector. Pharma companies need specialized space to do their work, and landlords are seeing strong demand for those properties, with many looking to add to their portfolios.
Life science centers are also getting more attention from prospective investors. Alexandria Real Estate Equities, an investment trust that specializes in the field, raised $1.1 billion in July share offering that founder Joel Marcus called “the largest equity offering in the company’s history.”
At Cambridge Crossing, life sciences and tech-specific space comprise about 2 million square feet. Most of the rest is residential space, along with 100,000 square feet of retail and restaurant space.
Bristol Myers joins a handful of other office tenants to commit to leasing space at Cambridge Crossing, including Philips North America, Sanofi, and Cerevel Therapeutics.
The New York-based firm acquired fellow biotechnology firm Celgene last November for $74 billion. The lease at Cambridge Crossing is part of accommodating that growth, sources told Bisnow. [Bisnow] — Dennis Lynch