Demand for Greater Boston Life Sciences Contracts in Q2 

Greater Boston has experienced stable new leasing but increasing vacancies in the office market, consistent leasing activity in the industrial market, and reduced demand in the life sciences sector, according to Cushman & Wakefield’s Q2 statistics.  

Office leasing hit nearly 870,000 square feet, led by the 128 Central and Financial District submarkets. However, the office vacancy rate rose to 16.2%, with sublease availability stabilizing. Direct asking rents increased by $4.20 per square foot year-over-year but have since leveled off. 

In the industrial sector, vacancy rates climbed to 8.5%, driven by the 495 South and North submarkets. Despite this, Urban North rents soared by 27.7% year-over-year to $25.38 per square foot. The 495 North submarket led leasing activity with over 460,000 square feet. 

Life sciences saw a demand contraction, with 141,000 square feet leased and a vacancy rate of 26.6%. Cambridge remained robust with a 17.6% vacancy rate. The asking rate fell for the third consecutive quarter to $90.39 per square foot, yet stayed 6.0% above last year’s figures.