Boston & New England + Boston + Industrial | September 1, 2023

Life science real estate vacancies and leasing in the Bay Area are beginning to normalize to pre-pandemic levels, according to research from Transwestern

Boston Life Sciences Cools But Still Oversupplied

In recent years, life sciences developments have accounted for more than one-in-four new office construction projects in the United States, a significant increase from less than 5% in the 2010s, according to a report by CommercialEdge.

This trend is particularly pronounced in Boston, where 89% of all new office construction is dedicated to lab space. While the life sciences sector remains attractive due to cutting-edge technologies and high prices per square foot, there is concern of potential oversupply as biotech investment has slowed in 2023, leading to layoffs in some companies.

Boston is experiencing a lab space boom, with 12.4 million square feet under construction, but it also lags in industrial space construction compared to other top cities.

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About Emily Fu

Emily Fu is Content Director of Connect Commercial Real Estate, where she covers the east coast markets, including New York, Boston & New England, and DC & Mid-Atlantic markets. She produces daily news stories as well as longer-form content, ranging from Q&As to thought-leadership pieces. She also writes feature stories for Connect Money. With previous stints at Reuters, Seeking Alpha, and Commercial Observer, Emily has covered the finance side of the commercial real estate industry, technology, media, telecom (TMT), and fashion. She attended the Columbia Graduate School of Journalism and currently resides in Manhattan.

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