T
he Fenway Center deck is nearly finished, yet the planned towers above it have been paused. “We’re not moving vertically right now,” said IQHQ president Tracy Murphy in a Globe interview. “Given the current lending climate, we’ll reassess after the podium is complete in Q1.” IQHQ will only start construction once a tenant commits to at least 50 % of the 960,000 sq ft of lab space, and the firm would scale back if market conditions improved.
The delay coincides with a severe glut of life‑science lab space in Greater Boston. Lab inventory has doubled over the past five years, driven by new builds and conversions of offices and warehouses, while demand has slowed. Newmark’s latest research shows regional lab vacancy at 36.1 % in Q3 2023, up from 4.9 % in Q4 2019. Some of the empty labs belong to IQHQ. For example, 109 Brookline, a 300,000‑sq‑ft IQHQ facility just a block from Fenway Center, sits vacant. The San Diego‑based trust acquired the building shortly after its 2019 launch, taking on a $130 million mortgage and adding sites in Brighton and Alewife. The Boston portfolio is only 50 % leased. Lila Sciences signed a 244,000‑sq‑ft lease at the Alewife Park campus this fall, but earlier this year IQHQ sold its 103 and 155 N. Beacon Street sites after scrapping a 646,000‑sq‑ft lab plan.
Murphy also said the developer is weighing the future use of the newly landmarked Hotel Buckminster in Kenmore Square, which may or may not become lab space. “If it’s not a lab, it’s not a lab,” she noted, adding that city priorities could shift the project’s direction.
Both Murphy and Fenway Center developer John Rosenthal remain confident in Boston’s lab market fundamentals. Biotech tenants’ needs change quickly; once a significant tenant signs, construction can launch swiftly. The complex will include a 22‑story tower, a 12‑story tower, and 1.6 acres of park street above the Pike between Brookline Ave., Beacon Street, and the Landsdowne Commuter Rail station. “Real estate is cyclical. I firmly believe the towers will get built. They will house over 3,000 people daily. I can’t say when,” Rosenthal said. “As soon as we have a tenant, we’ll build.” He highlighted the site’s high‑visibility location above the highway, proximity to Longwood Medical Area, and nearby train station as key attractions. The bulk of the complex’s foundation work—shutting down highway lanes and building a stable base—has been completed, reducing future construction time. “Once we have a tenant, it’s going to go up fast. The foundation is done. Steel goes up fast,” Rosenthal added.
Despite the oversupply, new construction projects with major life‑science tenants are underway. In Kendall Square, AstraZeneca is building at 290 Binney St., Takeda at 585 Third Ave., and Biogen at 75 Broadway. Newmark’s report notes that recent long‑term commitments by these companies confirm Boston’s continued relevance as a life‑science hub.
