CBRE: Boston Life Science Development Surpasses Pre-Pandemic Levels

The Greater Boston life sciences lab space market experienced a return to normalcy in 2022 and the first half of 2023 after a record-setting 2021, according to CBRE’s Q2 Boston Lab Figures report. Leasing velocity decreased to 520,000 square feet from 850,000 square feet in the previous quarter as lab tenants reevaluated their space requirements amid economic uncertainty. Despite this decrease, developers are still planning for future growth with over 17 million square feet of lab space under construction. The market saw negative absorption of 193,000 square feet and an increase in vacancy rate to 5.4%. Asking rents remained relatively flat while capital markets activity stayed subdued due to economic uncertainty and tightened lending standards. Notable deals included Orbital Therapeutics’ sublease of 166,000 square feet at 100 Binney Street in Cambridge during Q2 2021.