Greater Boston, September 4, 2025
News Summary
Despite a record-high vacancy rate of 33.9%, Greater Boston’s life sciences market is displaying resilience in early 2025. Leasing activity has surged, reaching nearly 96% of last year’s total, driven by significant transactions like BioGen’s 585,000-square-foot lease in Cambridge. The market is experiencing a shift, with more leasing occurring outside the urban core, particularly in the Route 128 Belt. Developers are pushing forward with new construction, but nearly 90% of the new lab space remains unleased, posing ongoing challenges amidst optimism for future demand.
Boston — Greater Boston’s life sciences market is showing signs of resilience in the first half of 2025 despite record-high vacancy, driven by a sharp uptick in leasing activity and several large, market-defining transactions.
Key developments and market snapshot
The region is confronting a record vacancy rate of 33.9%, up 710 basis points year-over-year. At the same time, leasing activity has accelerated sharply in H1 2025, reaching 95.6% of the total leasing volume recorded in all of 2024. Leasing in the period included a mix of large and mid-sized deals, signaling renewed tenant interest.
A major transaction contributing to the momentum is a 585,000-square-foot lease by BioGen at 75 Broadway in Cambridge, the largest new life sciences lease in the region in more than three years. That deal helped Cambridge lead the region in transaction volume in Q1 2025.
Where activity is occurring
While the urban core remains important, leasing in Q2 2025 saw more than 40% of volume take place outside the core, with the Route 128 Belt area capturing a significant share. East Cambridge continues to perform better than the broader market, posting a 19.9% vacancy rate and attracting top-tier biotech and pharmaceutical tenants.
Supply, construction and unleased space
Developers continue to deliver new space, with about 1.6 million square feet of lab space still under construction. Nearly 90% of that pipeline is unleased, which keeps pressure on overall vacancy despite stronger leasing activity. Cushman & Wakefield research indicates early signs of market resilience, but also highlights the persistent imbalance between supply and demand.
Rents and landlord sentiment
Average asking rents in the region have stabilized, with a modest increase of $0.17 per square foot in Q2 2025, bringing the regional average to $82.51 per square foot. Out of 19 tracked submarkets, nine saw rents either hold steady or increase in Q2, reflecting cautious optimism among landlords. East Cambridge is the most expensive submarket, commanding a 15.9% premium over the regional average.
Outlook and near-term expectations
Market analysis points to a gradual alignment between supply and absorption in the second half of 2025, provided leasing momentum continues and the construction pipeline is absorbed at a steady pace. The combination of large lease transactions and growing activity outside the urban core is expected to shape market dynamics in the near term.
Context and longer-term demand drivers
Greater Boston remains one of the top global life sciences clusters, supported by a dense network of research institutions, medical centers, and a skilled biotech workforce. Those structural strengths are expected to sustain long-term demand for lab and R&D space, even as short-term vacancy and new supply create cyclical challenges.
Implications for stakeholders
- Tenants gain more choice and negotiating leverage due to elevated vacancy and available new space.
- Landlords face pressure to lease new inventory but may see rent stabilization where demand is strongest, particularly in East Cambridge and select suburban nodes.
- Developers and investors will monitor absorption in H2 2025 to assess the viability of forward-start projects and the pace of rent recovery.
FAQ
What is the current vacancy rate in Greater Boston’s life sciences market?
The vacancy rate is 33.9%, which is a rise of 710 basis points year-over-year.
Has leasing activity improved despite high vacancy?
Yes. Leasing activity in H1 2025 reached 95.6% of the total leasing volume for all of 2024, including several large and mid-sized deals that indicate renewed tenant interest.
What was the largest recent lease and why does it matter?
A 585,000-square-foot lease by BioGen at 75 Broadway in Cambridge is the largest new life sciences lease in the region in over three years. The transaction is seen as a strong indicator of confidence in the Boston/Cambridge market and helped Cambridge lead transaction volume in Q1 2025.
How much new lab space is under construction and how much is unleased?
About 1.6 million square feet is under construction, and nearly 90% of that space is currently unleased.
What are the current rent trends?
Average asking rents have stabilized, rising slightly by $0.17 per square foot in Q2 2025 to a regional average of $82.51 per square foot. Nine out of 19 submarkets saw rents hold steady or increase.
Which submarkets are outperforming?
East Cambridge is outperforming with a 19.9% vacancy rate and commanding a 15.9% premium over the regional average. The Route 128 Belt also attracted a notable share of leasing activity in Q2 2025.
What is the near-term market outlook?
The market is expected to move toward better balance between supply and absorption in the second half of 2025, assuming continued leasing momentum and steady absorption of new inventory.
Quick reference table
| Metric | Value (H1/Q2 2025) |
|---|---|
| Regional vacancy rate | 33.9% (up 710 bps YoY) |
| Leasing activity (H1 2025 vs 2024) | 95.6% of total 2024 leasing volume |
| Largest new lease | 585,000 sq ft (BioGen, 75 Broadway, Cambridge) |
| Under-construction lab space | 1.6 million sq ft (≈90% unleased) |
| Average asking rent | $82.51 per sq ft (up $0.17 QoQ) |
| Top-performing submarket | East Cambridge — 19.9% vacancy; 15.9% rent premium |
| Submarkets with stable/rising rents | 9 of 19 submarkets |
| Geographic shift in Q2 leasing | >40% of leasing volume outside urban core (Route 128 Belt notable) |
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Additional Resources
- Boston Real Estate Times
- Wikipedia: Life Sciences
- Colliers International
- Google Search: Boston life sciences
- GlobeSt
- Encyclopedia Britannica: Science
- Bain Capital
- Google Scholar: Boston life sciences
- MassLive
- Google News: Boston life sciences
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.
