New age of innovation shifting product type demand for Greater Boston suburban tenants
The rapid growth in new wave industries have put a groundswell of increased demand in flex/R&D and lab space in the suburbs.
November 20, 2019
- The rapid growth in new wave industries such as Robotics, Biotech, Autonomous Vehicles, and Artificial Intelligence have put a groundswell of increased demand in flex/R&D and lab space in the suburbs.
- Since 2015 suburban demand for office space has more or less bounced around between 6 and 7 million square feet for any given point in time. However, demand for lab and flex/R&D space have both reached record highs in the suburbs increasing over 150 and 430 percent respectively.
- In 2015, the demand from flex/R&D and lab users only accounted for 16 percent of total suburban demand. Today, those users now account for over 40 percent of overall suburban demand. This has in part driven lab and flex/R&D rents up at a much faster rate than suburban office.
Source: JLL Research