Life-science market fundamentals are shifting in Greater Boston, according to the Newmark Q3 2022 Life Science Market Report. In fact, the analysis predicts that while upwards of 80% of the 40 million square feet of proposed permitted developments could be curtailed as a result, Boston’s eminence as a global life-science hub is unrivaled and activity will likely consolidate into the top markets.

Newmark Boston Market Reports

Key Findings

*Supply-side pressures are mounting while tenant requirements hover at 2.3 million square feet across 50 companies.

*Solid preleasing in many of the newly delivered laboratory building drove net absorption to almost 1 million square feet during the third quarter of 2022.

*Overall vacancies increased at one of the fastest rates in recent history due to rising sublease inventories, which now represent 1.4 million square feet space during the third quarter of 2022.

*Leasing velocity in the third quarter of 2022 was dominated by small- to mid-sized deals.

*Asking rents continued to climb throughout much of the Metro area, but the pace of growth has slowed for a third consecutive quarter.

*Investors’ appetite for life-science-related real estate remains healthy and preferences have shifted towards stabilized laboratory assets in recent months.

*Fundamentals will be challenged over the next 12 to 15 months with market conditions becoming more favorable to laboratory tenants.