Boston’s life sciences commercial real estate market is experiencing a positive shift for tenants, as reported in Colliers’ 2024 U.S. Life Sciences Report. In the first quarter alone, there was a record low of over 500,000 square feet of negative net absorption. This can be attributed to the addition of approximately 440,000 square feet of direct space and 120,000 square feet of sublease space to the market. As a result, total available space has now surpassed nine million square feet – nearly 18% of Boston’s inventory.
Despite lower peak demand in recent months due to COVID-19 impacts on businesses and research facilities, Boston’s life sciences industry remains strong with long-term growth potential. The area ranks highest for investments and leasing opportunities thanks to key industry drivers such as its large inventory and high tenant demand. Additionally,Boston leads in venture capital funding,National Institutesof Health grants,bio-medical degree completions,and recent net absorption rates.
Interestingly,the suburbs are currently outpacing Cambridgeand Bostonin terms offavorablenet absorptionrates.Anddespitealready occupyingover three million squaresfeetofspace,tentantsare still actively seeking additional optionsfor expansion or relocation withinthearea.
In summary,the latest report from Colliers highlights thattheboomcontinuesforlife sciencesinBoston,makingit an attractive location for both investorsandtenants alike.This trendis expectedto continueas morethan20%ofthefuturemillionsquarefeetlikelytodeliverby2024remainpreleased.Withitsstrongecosystemandsupportiveindustrydrivers,Bostonremainsattheforefrontoffosteringgrowthwithinthevibrantlifesciencessector.
