Boston, October 9, 2025
News Summary
Boston’s life sciences sector is experiencing a significant decline, with record lab vacancies and a sharp slowdown in funding. As of Q2 2025, the total available lab space reached 17 million square feet, with a staggering overall availability rate of 29.7%. Early-stage biotech firms are pulling back on real estate demands, and venture capital activity has dropped to its lowest since the pandemic began. Experts are warning of future challenges as economic pressures mount, and job growth lags behind other metropolitan areas.
Boston
Immediate summary
Boston’s life sciences sector is facing an unprecedented downturn marked by record vacancies and a sharp funding slowdown. As of Q2 2025, total available lab and life sciences space in Greater Boston reached a record 17 million square feet. Direct availability of lab space stands at 13.4 million square feet, and the overall availability rate of lab and life sciences space in the region has surged to 29.7%, an 8.6 percentage point increase from the previous year. Venture capital has cooled, and market indicators point to further weakness through 2026.
Key details
Boston has been the capital of the global life sciences industry for over a decade. The city has more lab space than any other location in the world and has attracted billions in venture capital funding for startups and federal government research funding. Biopharma employment in Boston has nearly doubled over the past decade.
Current conditions, however, show sizable dislocation. Current market conditions show record-high vacancies and cooling venture capital funding. 643,000 square feet of new lab space hit the market without any leases in place. Early-stage demand has shrunk significantly: Early-stage biotech firms are reducing their real estate demands, now seeking only 2.8 million square feet compared to 8 million square feet in 2021.
Financing and valuation pressures are directly affecting activity. Venture capital funding in the first half of 2025 was only $3.3 billion, the slowest two-quarter stretch since the pandemic-era boom began. Company valuations in biotech have significantly decreased, resulting in scant IPO activity, with only one IPO recorded in 2025 (Sionna Therapeutics). The public market has also re-priced the sector: The S&P Biotech Index has fallen 50% from its peak in 2021.
Market segmentation and leasing
Vacancy and leasing performance vary by submarket. Boston’s life sciences availability rate has reached over 38%, with over 4 million square feet of new lab inventory remaining vacant. Certain neighborhoods, like Downtown and Allston/Brighton, have shown little to no net absorption despite significant growth in the Seaport area. By contrast, Cambridge has maintained a more stable availability rate at 22.9%, with a 6% decline in asking rents and 2.7 million square feet remaining vacant in East Cambridge.
Notable leasing activity has been limited but present: Notable leasing activity includes Biogen’s lease of 580,000 square feet and Intellia Therapeutics’ lease of 101,000 square feet. The suburban market is also strained: The suburban life sciences market has 30.5% of the inventory available, with ongoing negative absorption trends. Distressed suburban assets have begun to change hands at reduced prices: Distressed assets in the suburbs are now transacting at steep discounts.
Pipeline, forecasts and macro drivers
Supply remains elevated. Over 3 million square feet of space is still under construction, with nearly 40% remaining unleased. Experts caution that vacancies will likely rise further: Experts predict that vacancies in the Boston life sciences market will continue to climb into 2026.
Broader economic and policy concerns are contributing to the downturn. Macroeconomic factors, including rising tariffs, inflation, and declining consumer sentiment, are complicating the market outlook. Sector-specific policy worries also weigh on confidence: Concerns over potential federal policy changes, such as cuts to NIH funding and staffing reductions at the FDA, are contributing to the negative sentiment in the sector.
Employment and institutional impacts
The employment picture has softened alongside the real estate and funding shifts. Job growth in Boston is at 0.2% year-over-year, underperforming compared to other metro areas like San Francisco and New York. In response to reduced federal support for research, Local institutions have implemented hiring freezes and layoffs due to shrinking federal support for research.
Given the mismatch between supply and demand and the decline in capital flows, Analysts anticipate that the path to stabilization for landlords and developers holding empty buildings will be long and uncertain.
Background context
For more than a decade the Boston area established itself as a leading global cluster for biotech and life sciences, supported by dense academic research, large hospital systems, and venture and federal funding. That structural strength has helped grow lab inventory rapidly, but the recent pullback in financing, lower valuations, and policy uncertainty have combined to produce the current oversupply and vacancy pressures described above.
FAQ
How much lab and life sciences space is available in Greater Boston?
As of Q2 2025, total available lab and life sciences space in Greater Boston reached a record 17 million square feet.
What is the direct availability of lab space?
Direct availability of lab space stands at 13.4 million square feet.
What is the overall availability rate in the region?
The overall availability rate of lab and life sciences space in the region has surged to 29.7%, an 8.6 percentage point increase from the previous year.
How much venture capital funding was raised in the first half of 2025?
Venture capital funding in the first half of 2025 was only $3.3 billion, the slowest two-quarter stretch since the pandemic-era boom began.
How many IPOs occurred in 2025?
Company valuations in biotech have significantly decreased, resulting in scant IPO activity, with only one IPO recorded in 2025 (Sionna Therapeutics).
What is Boston’s life sciences availability rate and vacant new lab inventory?
Boston’s life sciences availability rate has reached over 38%, with over 4 million square feet of new lab inventory remaining vacant.
What is the status of construction and leasing pipeline?
Over 3 million square feet of space is still under construction, with nearly 40% remaining unleased.
What is the current job growth in Boston?
Job growth in Boston is at 0.2% year-over-year, underperforming compared to other metro areas like San Francisco and New York.
Quick reference table
| Metric | Figure / Note |
|---|---|
| Total available lab and life sciences space (Q2 2025) | 17,000,000 square feet |
| Direct availability of lab space | 13,400,000 square feet |
| Overall availability rate (region) | 29.7% (up 8.6 percentage points year-over-year) |
| Boston life sciences availability rate | Over 38% (with over 4,000,000 square feet of new lab inventory remaining vacant) |
| New lab space that hit market without leases | 643,000 square feet |
| Venture capital (H1 2025) | $3.3 billion |
| IPO activity in 2025 | Only one IPO recorded in 2025 (Sionna Therapeutics) |
| Under construction | Over 3,000,000 square feet (nearly 40% unleased) |
| Notable leases | Biogen: 580,000 sq ft; Intellia Therapeutics: 101,000 sq ft |
| Suburban availability | 30.5% of inventory available; distressed assets transacting at steep discounts |
| Job growth (Boston) | 0.2% year-over-year |
Deeper Dive: News & Info About This Topic
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Additional Resources
- Stat News: Boston-Cambridge Biotech Capital
- Wikipedia: Boston
- Boston Real Estate Times: Life Sciences Market
- Google Search: Boston life sciences market
- GlobeSt: Boston’s Life Sciences Sector
- Encyclopedia Britannica: Boston
- CBRE: Global Life Sciences Atlas
- Google News: Boston life sciences news
- Colliers: Greater Boston Life Sciences Report
Author: STAFF HERE BOSTON WRITER
BOSTON STAFF WRITER The BOSTON STAFF WRITER represents the experienced team at HEREBoston.com, your go-to source for actionable local news and information in Boston, Suffolk County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Boston Marathon, Head of the Charles Regatta, and Boston Harborfest. Our coverage extends to key organizations like the Greater Boston Chamber of Commerce and Associated Industries of Massachusetts, plus leading businesses in finance, biotech, and insurance that power the local economy such as Fidelity Investments, Biogen, and Liberty Mutual Insurance. As part of the broader HERE network, we provide comprehensive, credible insights into Massachusetts's dynamic landscape.
