Local life science market reflects global trends

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From Don Domoretsky
Vice President
Jones Lang LaSalle

Our Global Life Sciences Cluster Report reveals that, following global economic trending, regional life science clusters in Greater Boston are evolving within established submarkets.

Kendall Square remains the nucleus, as real estate demand drives the need for research and development infrastructure. The discovery process demands efficiency, collaboration and intellectual prowess. Cambridge is the elite provider creating that element of connectivity.

The cost of being located in Cambridge’s and part of its vibrant culture comes at a premium but is worth the risk. Companies building here offset their cost by locating manufacturing and sales support in emerging markets like Brazil, India and Asia. Following global patterns, small to mid-size growth organizations are taking advantage of the low cost clusters right here in Massachusetts. 

Maturing scientifically, organizations become less research oriented and seek expansion opportunities in sales and marketing consolidating operations through outsourcing and downsizing. By migrating to the Greater Boston suburbs, companies can cut their operational cost by 30-to-50 percent thus increasing profitability. 

Initially everyone wants to be in Cambridge. For regional organizations that cannot offset costs globally our suburbs are a viable option. Dyax’s relocation from Cambridge to Burlington is a prime example. Other companies like Percivia, are now considering the move.  Companies can add value through relocation to the suburbs. It won’t happen overnight, but the opportunity is there.

 -Don

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