Watertown, Massachusetts, October 23, 2025
News Summary
The Watertown Mall has been sold for $100 million to Newton-based National Development, marking a significant shift in strategy amid challenges in the life sciences market. The property was previously owned by Alexandria Real Estate Equities, which had planned a redevelopment that has now been abandoned due to rising lab vacancy rates and falling lease prices. National Development intends to maintain the mall as a retail destination, focusing on improving its status as a premier shopping center with major tenants like Target and Best Buy.
Watertown, Massachusetts — The Watertown Mall has been sold for $100 million to Newton-based National Development. The sale closed on October 16, 2025, marking a financial and strategic shift amid a cooling life sciences market in Boston.
Key details
Buyer and price: The Watertown Mall has been sold for $100 million to Newton-based National Development.
Seller and prior purchase: The 18-acre property was previously owned by Alexandria Real Estate Equities, a California-based firm that purchased it in 2021 for $130 million.
Closing date: The sale closed on October 16, 2025, marking a financial and strategic shift amid a cooling life sciences market in Boston.
Redevelopment plans abandoned: Alexandria Real Estate Equities initially planned to redevelop the mall into approximately 500,000 square feet of lab and office space alongside retail. Alexandria had received city approval for a master plan in November 2023 that included significant lab and office space, but no construction had begun prior to the sale. The Watertown Mall’s prior redevelopment plans now appear to be definitively abandoned.
Why the change happened
Shifts in the Greater Boston lab market have altered the economics that originally justified converting the mall into life science space. The lab vacancy rate in the Boston area is reported at 27.7%, according to CBRE data. Lease rates for lab space have decreased from about $100 to around $85 per square foot. There are at least 20 vacant lab buildings in the Boston area and nearly 12 million square feet of unoccupied office space. These trends reduced the appeal of speculative lab construction and prompted the seller to exit the site.
What the new owner plans
National Development plans to keep the Watertown Mall as a retail destination, stating they aim to improve and maintain it as a first-class shopping center. The mall currently has tenants such as Target, Best Buy, and the Registry of Motor Vehicles and is reported to be 96% leased. National Development has not yet disclosed any long-term vision for the site beyond immediate retail management.
Local context and market impact
Watertown had been growing as a life sciences hub, with most recent expansion concentrated along Arsenal Street and projects such as Arsenal on the Charles. City leaders and planners had previously permitted life science projects in the town, but several permitted life science lab projects in Watertown had not started construction. The sale reflects a broader trend in the region’s real estate market, moving away from speculative lab conversions back toward stable retail and mixed-use developments.
Financial and strategic implications
The transaction represents a notable discount relative to the seller’s 2021 purchase price. The 18-acre site carried a higher valuation when it was acquired for redevelopment during a period of near-zero lab vacancy and rising rents. With lab vacancy rising and rents falling, the new owner is opting for a lower-risk, income-producing retail strategy rather than the previously planned large-scale lab conversion.
Immediate outlook
Representatives for National Development and Alexandria did not respond to requests for comment regarding the sale. For now, the mall will operate under National Development’s management with an emphasis on retail tenancy and property upkeep. Observers will watch whether the broader market stabilization prompts future changes in land use or renewed proposals for mixed-use redevelopment.
Background
Three years ago, demand for lab space in Greater Boston surged and vacancy rates were near zero, motivating conversions of commercial properties to life science uses. Market dynamics have shifted since then, producing higher vacancy, lower rents, and a pipeline of unoccupied life science and office space that has slowed new construction and speculative redevelopment.
FAQ
Who bought the Watertown Mall and for how much?
The Watertown Mall has been sold for $100 million to Newton-based National Development.
When did the sale close?
The sale closed on October 16, 2025, marking a financial and strategic shift amid a cooling life sciences market in Boston.
Who owned the property before and what did they pay?
The 18-acre property was previously owned by Alexandria Real Estate Equities, a California-based firm that purchased it in 2021 for $130 million.
What redevelopment did Alexandria plan?
Alexandria Real Estate Equities initially planned to redevelop the mall into approximately 500,000 square feet of lab and office space alongside retail.
Has construction started on the Alexandria plan?
Alexandria had received city approval for a master plan in November 2023 that included significant lab and office space, but no construction had begun prior to the sale.
Is the planned lab redevelopment still proceeding?
The Watertown Mall’s prior redevelopment plans now appear to be definitively abandoned.
What are the current lab market statistics cited?
The lab vacancy rate in the Boston area is reported at 27.7%, according to CBRE data.
How have lab lease rates changed?
Lease rates for lab space have decreased from about $100 to around $85 per square foot.
How much vacant lab and office space exists in the area?
There are at least 20 vacant lab buildings in the Boston area and nearly 12 million square feet of unoccupied office space.
What will National Development do with the mall?
National Development plans to keep the Watertown Mall as a retail destination, stating they aim to improve and maintain it as a first-class shopping center.
Who are the mall’s current tenants and occupancy?
The mall currently has tenants such as Target, Best Buy, and the Registry of Motor Vehicles and is reported to be 96% leased.
Quick reference table
| Item | Detail |
|---|---|
| Property | The Watertown Mall (18-acre site) |
| Sale price | $100 million |
| Buyer | Newton-based National Development |
| Seller / prior purchase | Alexandria Real Estate Equities; purchased in 2021 for $130 million |
| Closing date | October 16, 2025 |
| Previously planned redevelopment | Approximately 500,000 square feet of lab and office space alongside retail (plan now appears abandoned) |
| Current tenant examples | Target, Best Buy, Registry of Motor Vehicles |
| Current reported occupancy | 96% leased |
| Local lab vacancy rate | 27.7% (Boston area, CBRE data) |
| Lab lease rate change | From about $100 to around $85 per square foot |
| Vacant buildings / space cited | At least 20 vacant lab buildings and nearly 12 million square feet of unoccupied office space in the Boston area |
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Additional Resources
- Watertown Manews
- Wikipedia: Watertown Mall
- Boston Real Estate Times
- Google Search: Watertown Mall
- MassLive
- Google Scholar: Life Sciences Market Boston
- Boston Globe
- Encyclopedia Britannica: Lab Space Market Boston
- Axios
- Google News: Watertown Mall
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