Tenant Demand Rises in Major U.S. Life Science Markets

Even as vacancies remain elevated in the major U.S. life science markets, active tenant demand across Boston, the Bay Area and San Diego increased 62.6% from its second-quarter 2025 trough, and year-to-date leasing reached 6.9 million square feet, Newmark reported. “The measurable increase in active tenants is likely a bellwether for future leasing demand, although headwinds still exist,” according to the newly released 3Q26 U.S. Life Science Market Conditions & Trends report.

However, the improved demand doesn’t all come from life science tenants. “For owners, alternative users are ramping up leasing within life science assets,” states the report, prepared by a Newmark team led by Liz Berthelette, research director, life science research. “Occupiers in ‘tough tech’ fields such as robotics, quantum science and AI are increasingly active in key markets.”

For example, Foundry Robotics signed a 128,994-square-foot lease in Emeryville, one of the largest Bay Area life science leases highlighted in the Newmark report, and Greater Boston is seeing a notable uptick in AI requirements. “Combined with a construction pause and select adaptive reuse projects, that activity reduces competitive inventory and supports a gradual rebalancing of fundamentals,” according to the report.

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