In the fourth quarter of 2023, Boston’s lab space market faced challenges with a high availability rate of almost one-fifth, totaling 1.8 million square feet for lease, according to Colliers’ Boston Life Sciences report. The conversion of office spaces into labs is contributing to this trend. Some notable properties such as 745 Atlantic, Seaport Science Center and 55 Summer Street are still seeking tenants. Additionally, subleasing by new building tenants can be seen with Foundation Medicine subleasing 125,000 square feet at 400 Summer Street.
Despite these challenges in the market, growth in the Fenway/Kenmore Submarket is being driven by hospitals and universities. In fiscal year 2023 alone,Boston’s research institutions received $1.3 billion in NIH funding – more than what was received by individual states like California or New York.The area has also seen significant transactions such as Boston Children’s Hospital purchasing a condo measuring268 ,000 square feet at Alexandria Real Estate Equities’ upcoming project-421 Park,and plans for a new $1 .7 billion cancer hospital from Dana-Farber Beth Israel Deaconess Cancer Collaboration.
The article “Boston Life Sciences Vacancies Hits l .8M SF” originally appeared on Connect CRE.
