Worcester Business Journal

8 Worcester Business Journal | October 16, 2023 | wbjournal.com cause one of the advantages Worcester has over Greater Boston area is less expensive rents. If developing lab space costs more, then developers will need to charge tenants more. "e concern that we have is that in Boston they're charging around $100 a square foot and up for lab space, and you still can't find it," Weaver said. "ey're building 10 million square feet of new lab space. In that type of marketplace, you can put these re- quirements in, and the market has the elasticity to support it." In Worcester County, lab space goes for $30-$45 per square foot, according to MassBio, making the economics tough for developers. In April, Philip DeSimone of Worcester real estate brokerage Kelleher & Sadowsky Associates said there is existing economic pressure on development west of Interstate 495. "Investors and developers are saying, 'If I were to build a building, say on 495 or in Worcester, I need $60 to $70 rents just to make the math work,'" said DeSimone. MassBio sees a need to expand the biotech industry into regional clusters outside of the Metro Boston area and is doing all it can to help communities grow these clusters, Bradford said. "For Worcester, a city looking to fur- ther create an environment in which life sciences companies can scale but lacking supply of any move-in ready or planned stock, adding new regulations will only dissuade the development their emerging sector so badly wants," he said. Odell disagrees the upfront costs of development are higher because of the codes and goes further to say that Massachusetts Department of Energy Resources studies show the operating costs for the building are actually lower under the new standards. Upfront costs are the same or lower when one considers incentives from utility companies, as well as state and federal incentives, Odell said. Under the new codes, developers in Worcester gain experience building under these new standards, which is valuable in itself because other municipalities will eventually adopt the higher-standard codes, Odell said. Developers with experience building under these standards will have an advantage going forward. Eventually, everyone will get to an all-electric standard, Jennings said. e specialized stretch code forces developers to prepare for this, but it is up to them if they want to go fully elec- tric now or wait until the technology develops further. I N B U S I N E S S WOMEN B U S I N E S S O U T S T A N D I N G WBJ n W O M E N B U S I N E S S O U T S T A N D I N G WBJ IN WOMEN I N B U S I N E S S O U T S T A N D I N G WBJ Worcester Business Journal PLEASE JOIN US! For a special awards celebration as we recognize the achievements of Worcester Business Journal's 2023 OWIB honorees. NOVEMBER 1, 2023 Mechanics Hall, Worcester • 11:30AM - 2:30PM Cost: $65. Pre-registration required. Lisa Kubiak Mary Ann Morse Healthcare Corp. Claudia Russo Workplace Resource LTD Holly Vaillancourt Existing Conditions Kim Dawkins Pathways for Change Damaris Dominguez National Grid Marlina Duncan UMass Chan Medical School Jennifer Hernandez GEM Marketing Solutions Corporate Sponsor Supporting Sponsor Presenting Sponsors www.wbjournal.com/womeninbusiness Copyright © 2023 Marsh & McLennan Agency LLC. All rights reserved. Wherever ambition takes you, we'll help make it happen. Ambition, talent, and hard work are the keys to success. So is being a part of a team that helps you grow your skills, take on new challenges, and build your career on your terms. See how we can help your career grow at MarshMMA.com Continued from previous page W

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