B
oston’s life‑sciences real estate market is cooling sharply. Colliers’ Q3 2025 Life Sciences Market Report shows record‑high vacancies, falling rents, and a retreat from speculative builds.
**Vacancy Surge**
The market has recorded negative net absorption in six of the last seven quarters. Roughly 15 million sq ft of direct lab space and 3.6 million sq ft of sublease inventory are now available, making up 32.2 % of the region’s life‑sciences portfolio. More than 30 newly finished lab buildings sit empty, prompting developers to pause or re‑configure projects, with some shifting to other property types or selling sites outright.
**Rent Decline**
Availability rates hit new highs in Q3: 41.7 % in Boston, 25.7 % in Cambridge, and 32.2 % in the suburbs. Correspondingly, asking rents fell across all three areas. East Cambridge rents dropped 7 % YoY, slipping below $100 / sq ft for the first time since 2021. The slowdown is largely tied to a 13 % drop in venture funding for Boston‑area biotech firms, which raised $5.5 billion in the first nine months of 2025—nearly 60 % below the 2021 peak. Funding activity rebounded in Q3 with multi‑$100 million rounds from Treeline Biosciences, Odyssey Therapeutics, Strand Therapeutics, ARTBIO, and Avalyn Pharma.
**Positive Deals**
Despite the headwinds, several large leases injected optimism. Lila Sciences signed a 244,000 sq ft lease at IQHQ’s Alewife Park campus. Eli Lilly committed 75,000 sq ft at 645 Summer Street in the Seaport District. TransMedics is evaluating a 500,000 sq ft full‑building lease at Somerville’s Assembly Park, a potential win for a city with an 80 %+ vacancy rate.
**Distressed Sales**
High vacancies and financing strain are driving distressed sales in the suburbs. Northeastern University bought the Burlington BioCenter for $301 / sq ft, 68 % below its 2022 price. Lincoln Property Company acquired Stony Brook Office Park in Waltham for $94 / sq ft, also 68 % below prior valuation.
**Construction Pipeline**
Boston added 23 million sq ft of lab space over the past four years, largely from speculative projects that now contribute to the record vacancy rate. Of the 3 million sq ft still under construction, most is pre‑leased or build‑to‑suit, indicating a shift toward demand‑driven development. Key projects include:
- 585 Third Street (550,000 sq ft, leased to Takeda)
- 75 Broadway (585,000 sq ft, leased to Biogen)
- 290 Binney Street (566,000 sq ft, leased to AstraZeneca)
- 20–22 Drydock (319,000 sq ft, leased to Vertex)
**Economic Context**
Boston’s job growth slowed to 0.4 % last year, less than half the national 0.9 % rate, with weakness in education, health services, and professional/business services—about 40 % of regional employment. Nationally, tariff‑related inflation, weaker consumer sentiment, and slower GDP forecasts add uncertainty. The Fed cut rates in September and signaled possible further reductions, balancing employment and inflation goals.
**Market Outlook**
Colliers concludes that Boston remains the country’s largest life‑sciences hub but is in a recalibration phase. Tenant‑favorable conditions are likely to persist as developers pause speculative builds and landlords adjust pricing. Long‑term fundamentals—talent density, institutional research, and venture activity—remain robust, positioning the market for recovery once capital markets stabilize.
