​​Boston BioBeat February 2024 ​

Nearly 25% of Greater Boston’s life science inventory is currently available for lease, marking the first time in recorded market history that availability has surpassed 20.0%. The increase in availability was geographically widespread as each of the market’s five clusters recorded a quarter-over-quarter increase of at least 250 bps.  

The market hit a new historical high for construction deliveries in 2023 as nearly 6.7 msf of new lab inventory completed construction, 62.2% of which remains available. As the voracious demand that fueled the recent record-breaking bout of development has waned, construction starts have begun to slow, which will allow supply and demand to once again rebalance throughout the coming years.  

Greater Boston’s life science market continued its reign as one of the nation’s leading recipients for venture capital investment, topping the list in 2023 as the market received $6B, exceeding the next highest market’s total by more than $1B.  

Annual demand in 2023 was muted compared to historical averages, totaling 2.1 msf, as market conditions began to normalize following a sustained period of growth. Notably, emerging clusters have begun to claim an increasing share of leasing activity, with the 128 Central submarket surpassing East Cambridge’s annual total by 5.3%. Despite softening market conditions, Boston’s international reputation as a premiere life sciences market will keep it well-insulated from the worst effects of a slowdown.