- Philips to Move North American Headquarters to Cambridge Crossing
Philips to Move North American Headquarters to Cambridge Crossing
The Cities of Cambridge and Somerville announced this week that international health technology leader Philips will move its North American headquarters to Cambridge Crossing in 2020. Cambridge Crossing is a 45-acre development site where Cambridge, Somerville, and Boston converge and is owned and under development by an affiliate of DivcoWest. Philips’ offices will occupy 243,000 square feet of the 250 North Street building, which is under construction and straddles the Cambridge and Somerville city line. The location will become home to more than 2,000 Philips employees.
This move by Philips is further recognition that Massachusetts and the Greater Boston area represent one of the strongest life sciences clusters in the world. The Cities of Cambridge and Somerville will collaborate to support Philips’ transition to the area.
“We are excited to welcome Philips’ innovations and commercial division to our vibrant life sciences community,” said Cambridge City Manager Louis A. DePasquale. “Cambridge is home to more than 400 life science companies, and our commercial tax rates continue to be one of the lowest of any city in the state. We look forward to working with the Philips employees, the City of Somerville, and the Commonwealth to support the company’s transition into their new home in Cambridge Crossing.”
“Philips North America’s decision to move to Cambridge Crossing right next to the relocated Lechmere T-stop—the first of seven new Green Line stations to come— is a great example of the strength of a regional approach to development and our shared commitment to a Smart Growth strategy for our cities,” said Somerville Mayor Joseph A. Curtatone. “Philips is one of the most respected brands in the health technology industry. We are extremely proud to welcome them to our vibrant and diverse community and introduce them to our deeply talented, highly knowledgeable, and innovative resident workforce.”
The 45-acre Cambridge Crossing master plan, based on the City of Cambridge’s planning for Eastern Cambridge, creates a new mixed-use neighborhood and includes major investment in green space including open space, an athletic field, and an already completed park. The plan also includes investments in public transit, with the new Green Line Station, roadway, and bicycle-pedestrian infrastructure. The City of Cambridge expects that the move of the significant industry leader to Cambridge Crossing will catalyze future development in the district.
The City of Somerville’s SomerVision comprehensive plan calls for community-driven development that among other goals will support the creation of jobs, open space, and affordable housing, and the Philips move will advance all of these priorities. Roughly one-third of the 425,000 sf North Street building is located in Somerville, with two-thirds of the building located in Cambridge. In addition to the 2,000 jobs and new commercial tax revenue that Philips will bring to Cambridge and Somerville, this project will generate payments to Somerville from DivcoWest for jobs linkage to support job training and other workforce development efforts, and housing linkage to support the creation of affordable housing. Cambridge will receive incentive zoning contributions from the development of the building to support affordable housing.
Cambridge Crossing’s proximity to the region’s advanced technology marketplace and employment pool, research facilities, hospitals, and academic institutions was a motivating factor in the company’s decision to relocate. Also of importance were the cities’ collaborative efforts with the Commonwealth and DivcoWest to secure the Green Line Extension, which will dramatically improve access to transit in both communities and throughout Greater Boston. The Cities of Cambridge and Somerville are both members of the Life Sciences Corridor, a network of five adjoining communities that together host more than 700 life science and biotech companies along the MBTA’s redline.
“As a leader in health technology, our move to the Cambridge-Somerville area further positions Philips as a key player in this vibrant, growing healthcare technology ecosystem,” said Dr. Joe Frassica, Chief Medical Officer and head of Research for Philips North America. “This move will enhance our ability to collaborate with existing academic partners and customers. In addition, we will be better able to expand our work with the amazing Cambridge and Boston Healthcare innovation and start-up community that will help us to co-create the solutions needed to drive real change in the healthcare industry. These collaborations will be crucial to our ability to advance our ongoing innovation in areas such as artificial intelligence, genomics, infectious disease, healthcare informatics, imaged guided therapy, robotics, natural language processing, and population health.”
“We are pleased to see Philips continue their role as a major innovator in our internationally renowned healthcare and life sciences ecosystem,” said Massachusetts Housing and Economic Development Secretary Jay Ash. “Massachusetts is home to world-class academic institutions, hospitals, R&D facilities and an incredibly talented workforce, an ideal location for Philips’ North American headquarters.”