Boston Suburb Enacts Long-Awaited Inclusionary Zoning Policy

Recent life sciences real estate reports paint a picture of overwhelming demand and a great opportunity for new developers.

A record $26B of venture capital funding poured into the sector in the first six months of 2021, according to Newmark, setting loose scores of well-capitalized startups seeking lab space. CBRE found that the 15.6M SF of speculative lab construction underway nationwide is nearly 30% leased, signaling developers can’t keep up. The overall vacancy rate for the top 12 biotech clusters, per CBRE, is just 5.6%.

But the reality is a select few developers have been able to cash in. In addition to difficulties finding talent, and the special requirements and expertise required to build lab spaces, the cost of such projects is prohibitive and the risk of failure is much higher than traditional office buildings. 

“Companies who have been at this have had a large jump, and it's taken them decades to figure it out,” said NBBJ partner Tom Sieniewicz, an architect who specializes in life sciences projects. “These are high-service clients with very expensive infrastructure and demands. As much as I admire the energy…

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In an interconnected world, the sight of angry workers and investors besieging a corporate HQ in a far-off Chinese city is enough to have global financial markets asking if a rerun of Lehman Brothers is on the horizon. 

The debt issues surrounding giant Chinese residential real estate developer Evergrande have caused global stock markets to whipsaw over the past fortnight as investors worry its potential collapse might have a damaging effect on the Chinese economy, the world’s second-largest, and thus impact the fragile post-Covid economic recovery in countries like the U.S. and UK. The commercial real estate sector is relying on that economic recovery to help it recoup some of the ground lost during the coronavirus pandemic. 

Fears that a debt default or total collapse of Evergrande could cause a Lehman-style financial contagion and credit crunch are receding, but investors, including those in commercial real estate, now have another question to address. How will China manage the restructuring of Evergrande, and what does it mean for the role of the Chinese government and the country’s major companies in the world economy going forward? 

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Last year, the nation was forced to confront the realities of racial injustice and social inequality after protests erupted across the country. And like many industries, when the real estate development community examined its own record, it was clear it fell short in many ways.

Increasingly, inclusive development — one that is respectful of communities’ needs and the lives of the residents who already live there — is becoming a priority for industry decision-makers.

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