October 1, 2025 | Boston Business Journal
There’s an office building on the edge of Kendall Square bucking the trend of high vacancy rates, and it isn’t something newly built or anchored by a big-name tech company.
It’s 201 Broadway, built in 1987 and only a few years ago considered for conversion into apartments because of the slumping office market. Owner Davis Cos. instead stuck with offices, and now it’s paying off.
“This was a significant bet that the Davis team made to say we’re going to lease this to office tenants,” said Jon Needham, the firm’s senior vice president for asset management. “It’s meaningful how much this building has really bucked the trend.”
The 120,000-square-foot building is 85% leased, with a signed letter of intent expected to push it beyond 90%. That beats the rest of East Cambridge, which in the second quarter had an occupancy rate of just over 70%. And Davis has landed a number of new tenants, including insurance tech company Insurify, which has committed to 21,000 square feet.
Other new tenants include 8,000 square feet going to Mitsubishi Electric US, which is joining a sibling in the building, Mitsubishi Electric Research Laboratories. Others are the materials engineering firm Applied Materials, and the biomedical AI company Data4Cure, which is relocating from Waltham.
Finally, there’s a new ground-floor restaurant, the Asian-Mediterranean spot Flavor Boom, which has taken the place of Kendall Kitchen on the building’s Portland Street side.
The eight-story building isn’t far from the heart of Kendall Square. The research lab Draper is about a block away, and Moderna opened its new headquarters last year about two blocks away on Binney Street.
Major developments are underway just beyond that: one called MXD, from the real estate investment trust BXP, and another named Kendall Common from MIT’s development arm.
Kendall Square has long been life sciences’ hub, and East Cambridge’s lab vacancy rate at one point hit zero in 2021. But the neighborhood isn’t immune to broader real estate challenges.
Two newly-built office buildings at the CambridgeSide development have not filled, and the 40 Thorndike tower — the former county courthouse and jail building — has not found any takers for its 422,000 square feet of office space. MIT has even halted construction on a planned 13-story mixed-use building at 200 Main St.
Needham said that 201 Broadway “rode the same roller coaster that a lot of other properties did” in leasing over the past few years. The Davis Cos. invested roughly $9 million in a tenant lounge, tenant conference room, new lobby and amenities including bike storage and locker room.
The neighborhood also remains a significant asset, Needham said.
“We believe in Cambridge. We believe in the future of Cambridge,” he said. “It’s always been a magnet for many companies who want a presence in greater Boston.”