EXCLUSIVE: Sage Therapeutics In Talks For Up To 350K SF At Cambridge Crossing

A new darling of the drug industry could be heading to Cambridge Crossing.

Sage Therapeutics is in early talks to lease between 250K and 350K SF of office at Cambridge Crossing, DivcoWest’s 45-acre East Cambridge mixed-use development blocks from Kendall Square, according to brokerage documents obtained by Bisnow, as well as multiple sources familiar with the deal.

Sage’s upcoming expansion comes after Tuesday’s U.S. Food and Drug Administration approval of Zulresso, Sage’s drug to treat postpartum depression. It is the first treatment of its kind ever approved by the FDA.

The Cambridge-based company has a lease on just over 58K SF at its 215 First St. office as well as just over 40K SF at 245 First St., according to a 2018 filing with the Securities and Exchange Commission. 

Both leases expire at the end of August 2024, and the SEC filing indicates Sage has “entered into other non-material leases and expect to lease additional space prior to the expiration of our leases to meet the needs of the business.”

If a deal is finalized, sources told Bisnow Sage will likely end up at 250 Dawes St., a proposed, 500K SF flexible office and lab building.

Work is already underway near the project on a 430K SF science and technology building at 250 North St., which will be the new headquarters for Philips North America.

French drug manufacturer Sanofi finalized a deal at the end of 2018 for 900K SF of offices at Cambridge Crossing, the largest single office lease in Greater Boston since Vertex Pharmaceuticals leased 1.1M SF at Fan Pier in 2011.   

Sage Therapeutics declined to comment through a spokesperson. DivcoWest and representatives with Cushman & Wakefield, which is representing Sage Therapeutics, also declined to comment.

Kendall Square remains the hottest life science market in the country, but it is also severely space-constrained, with vacancy rates hovering around zero. While developers have looked to grow life science clusters in places like the Seaport and Allston, Cambridge Crossing’s developer has used its proximity to Kendall as a key marketing tool.

The project is a half-mile from Sage Therapeutic’s current Kendall Square headquarters. 

“There is a severe supply/demand imbalance in Cambridge today. There are far more tenants looking for space than there is lab product to accommodate them,” Colliers International Director of Research Aaron Jodka said. “Cambridge Crossing has been tremendously successful in landing Philips and Sanofi, while the Seaport is drawing attention, too. The expansion of the life science industry is proving to be a boon to landlords throughout Greater Boston.”