CBRE, Colliers Research Finds Glass Half-Full Perspectives for Boston’s Life Science Market
Market fundamentals remained dynamic as headwinds persisted through the end of 2022 in the Greater Boston life science market, according to CBRE’s Boston Metro Life Sciences Figures Q4 2022 Report.
The economic environment has had a significant impact on demand, as current demand remains lower than 2021 levels, while supply has continued to increase with new construction and conversions. Across the Boston metro area, private companies have put growth needs on hold as funding has become harder to secure and preserving cash and extending one’s runway remains a top priority.
Meanwhile, Colliers’ 22Q4 Boston Lab Market Report finds that the Boston area continues to appeal to life science companies at all stages, and these firms are landing substantial venture capital/pre-IPO investments. With about $9 billion brought in by 200-plus local companies, 2022 was a healthy fundraising year for life sciences.
Colliers also notes Boston’s leasing conditions as shifting in favor of tenants. The amount of available space has increased to an overall availability rate of 8%, seven percentage points higher than its 2021 low point. Sublease space at record-high levels has attracted companies looking for short-term solutions. Rising vacancies are reducing upward pressure on rents.