Tishman Turning Site in Boston Suburb Into Industrial Park

The industrial market’s pandemic-era highs appear to be in the past, but some developers — including Tishman Speyer — can’t resist the urge to dig deeper into the sector.

Tishman Speyer and Mitsui Fudosan America plan to develop a 700,000-square-foot industrial park in Peabody, a suburb roughly 40 minutes outside of Boston, the Boston Business Journal reported. The necessary approvals for the redevelopment of 8 Centennial Drive are already in place, according to the companies, and each building will range from 130,000 square feet to 260,000 square feet.

The two developers acquired the site for $77 million. The property is the longtime home of Analogic’s headquarters; the company designs imaging systems for medical providers and aviation security out of a 515,000-square-foot facility on the 60-acre site.

Tishman Speyer industrial leader Andy Burke told the outlet that the site’s infill location, highway access and proximity to Boston were benefits to the developers.

Analogic has two years to vacate the site. The company, which employs 500 people at the facility, is searching for a space that will accommodate its growth, according to its chief financial officer.

The site was almost home to Amazon, up for consideration when the e-commerce behemoth was dominating the industrial market in 2021. A year later, however, Amazon pulled out of the deal.

Tishman and Mitsui are expanding on a joint venture they announced in 2022 to target the acquisition, development, redevelopment and operation of industrial properties. The joint venture was seeded by a $500 million commitment from the firms.

In July, the developers made their first acquisition through the venture, acquiring a three-acre site near San Francisco’s Bayview neighborhood for $33 million. Early this year, they spent $146 million on 32 acres of land in Irvine, California.
— Holden Walter-Warner