2025 Year-End Boston Life Science Report
The Commonwealth's lab market closed 2025 under duress, but is poised to start its turnaround in 2026.
Vacancy rose to 28.8% - a new high. Unleased, speculative deliveries helped drive this expansion: Alewife Park in West Cambridge, 10 World Trade Center Avenue in the Seaport, and 60 Guest Street in Brighton all delivered without any leasing. As it relates to the turnaround, it is worth noting that Alewife Park secured an anchor tenant in Q3 – Lila Sciences executed a 244,000 SF lease for two of the buildings shortly after emerging from stealth mode.
While leasing activity was relatively muted this quarter, there are a few deals worthy of further context. LabShares signed the largest deal in Q4, executing a 58,000 SF lease at The Davis Companies’ new development at 66 Galen Street in Watertown. LabShares plays a pivotal role in the incubation of early-stage life science companies, helping propel them toward growth and profitability, which ultimately translates into greater demand for life science space. LabCentral, another comparable co-working lab provider, recently reported that their occupancy numbers have been increasing throughout 2025, and in fact have surpassed 2019 levels.
In Waltham, Dash.Bio executed a new lease for 24,000 SF at 21 Hickory Drive. Dash is yet another success story, as this lease represents a 456% footprint expansion – a remarkable growth given it was founded in 2024. This perhaps speaks to a broader trend in the life sciences arena. There has been much consternation about the lack of AI-focused companies here in the Commonwealth, with the bulk of this industry located in California. However, both Lila and Dash are AI-focused life science companies, offering a window into the integration between Massachusetts’ leading bastion of innovation, life sciences, and the emerging technologies of the AI sector.
Capital markets activity remained muted. The most notable lab asset sale this quarter was 30 Hampshire Street in East Cambridge – Phase 3 Real Estate Partners added the fully-vacant, 30,000 SF life science asset to their portfolio in October. Otherwise, there was a small selection of land development sites originally intended for life science uses that traded hands which are expounded upon later in this report.
New, speculative developments are functionally nonexistent, though there is one notable exception on the horizon. In April, Healthpeak Properties and Hines announced their partnership on Cambridge Point, a proposed 45.7-acre, 4.6 million SF, mixed-use development in Alewife, 1.3 million SF of which is slated for technical office/lab space. The project will cost an estimated $4.5 billion and is expected to break ground in 2027 with a minimum delivery target of 2037. Aside from Cambridge Point, investor interest in speculative lab product has plummeted as a result of lowered tenant demand, high vacancy rates, and increases in the costs of construction and capital. In November, it was confirmed that construction has stalled on IQHQ’s Fenway Center project – a 960,000 SF, $1 billion air rights development over the Massachusetts Turnpike. IQHQ initially signed a $55 million air rights deal with MassDOT in 2021 for two towers, which would have been the largest air rights project since Copley Place’s construction started in 1977. IQHQ is reportedly waiting for preleasing to pick up, and will not start development until 50% of the project is preleased.
For more information please contact:
Mark Fallon, Director of Research & Strategy | mfallon@hunnemanre.com
