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Boston Life Sciences Ends with 2021 Record Low Supply, Highest-Ever Rents
Demand for new life sciences lab space in the Boston metro market showed no signs of slowing down during the fourth quarter of 2021, with nearly 1.9 million square feet of positive net absorption resulting in record-breaking asking rents and a vacancy rate of just 1.3%, according to a report from CBRE.
“The Boston lab market is a supernova with unprecedented demand and record-setting venture capital funding,” said Eric Smith of CBRE. “Rents have climbed to the highest point on record because of phenomenal positive absorption of 5.2 million square feet in 2021. With virtually no supply on the horizon until 2023, many lab companies will be forced to find ways to optimize their space utilization or entertain less than ideal split operations.”
According to CBRE, one of the biggest factors in the market’s ongoing strength has been record-setting venture capital investments in life sciences.
Photo: Newly completed life sciences building in Waltham, MA
- ◦Economy
