Tishman Speyer eyes 700K sf redev for healthcare HQ in Boston suburb

Developer, Mitsui Fudosan America acquired Peabody site for $77M

Tishman Turning Site in Boston Suburb Into Industrial Park
8 Centennial Drive in Peabody MA with Tishman Speyer's Rob Speyer and Mitsui Fudosan America's John Kessler (Loopnet, LinkedIn, Tishman Speyer)

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.

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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

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