October 2025 Boston Life Science Report
The Commonwealth's life science market remains under duress.
Vacancies advanced to 26.7% at the close of Q3, and leasing activity remains minimal, with some key exceptions. Timing is everything – and currently, the main cruxes that support real estate – supply and demand – are working against this asset class.
More than four million square feet of space delivered in 2024 – the majority uncommitted. Hunneman Research is currently tracking yet another 3.5 million SF of facilities presently under construction, with about half having committed tenants. The sector is seeking relief, and at present, there does not appear to be a significant course correction on the horizon, at least not one that will quickly and dramatically improve market fundamentals.
Good news exists – most notably in the form of blue-chip users re-affirming their commitment to metro Boston’s life science ecosystem. Eli Lilly executed a lease for 75,000 SF at 645 Summer Street in the Seaport in mid-September. In March, Biogen signed a fifteen-year lease for their new corporate headquarters in Kendall Common at 75 Broadway. They intend to occupy 580,000 SF of the brand-new development (currently in planning), sponsored by BioMed Realty and MITIMCo. In Watertown, Foghorn Therapeutics committed to 73,000 SF at 99 Coolidge Street at the close of Q2. At 400 Technology Square, Intellia Therapeutics inked a 101,000 SF deal with the other life science landlord leviathan – Alexandria Real Estate Equities. ARE plans to expend $41.5M on construction and tenant improvements – over $410/SF, offering a compelling insight into the rising tenant improvement allowances needed to attract marquee tenants. It should be noted that Intellia has expansion options for another 46,000 SF in two phases, with additional TI dollars earmarked should that occur.
Space givebacks slowed, but there were several notable departures. Significant news came from SmartLabs, as it was confirmed they are vacating 140,000 SF on the third floor of CambridgeSide. Also at CambridgeSide (60 First Street), Prime Medicine listed 150,000 SF of their lab space for sublease, leaving the facility almost entirely available. Arbor Biotechnologies has put nearly 22,000 SF of lab/office space up at Acorn Park Drive in West Cambridge, and Intellia listed 65,000 SF for sublease at 60 Erie Street in East Cambridge.
The M&A market continues to impact life science. Decibel Therapeutics and Magenta Therapeutics were both acquired in late 2023 and subsequently registered defunct. As their leases expire, more of their space continues to come online in Boston and Cambridge, to the tune of 66,000 SF this year alone. There continues to be more acquisition activity, with Novartis picking up Anthos Therapeutics in Cambridge for nearly $3.1B. That deal came soon after GSK plc’s announcement of their plans to acquire IDRx, a Plymouth-based life science company. This series of large-scale buyouts and industry consolidation picked up steam in 2023 and 2024, and with a constrained funding environment still on the horizon, is expected to continue throughout 2025.
More space came online in the western suburbs. 40 Sylvan Road in Waltham – a former National Grid HQ facility - is now an entirely vacant 311,000 SF lab/office asset. It should be noted that vacant space such as 40 Sylvan Road is not necessarily destined for technical life science uses. Given the infrastructure of the building, it is possible that it could accommodate another tenant. With the addition of 40 Sylvan Road and 850 Reservoir Woods earlier this year, Waltham’s lab availability rate is now approaching 30%.
Notwithstanding the new construction challenges above, developers have continued to propose life science projects throughout 2025. Skanska has submitted plans to redevelop the former Simmons College site at Longwood Place – two commercial lab/office towers totaling more than 1M SF. BioMed Realty is planning yet another office to lab conversion at 350 Massachusetts Avenue in Cambridge. The existing 5-story, 118,000 SF office building is set for a 60/40 lab to office ratio.
Immediate short-term outlook aside, the biotechnology/life science industry is one of booms and busts. In the short term, space givebacks, acquisitions, and general consolidations will continue. Companies that were founded and received generous sums of venture capital and private equity dollars had a limited runway to prove their science and carve a path to profitability and success. That runway became extremely short, extremely quickly. Regardless, a reflection on the commitments from market leaders inspires confidence over a longer-term time horizon. Since the market correction began just a few short years ago, Takeda announced their commitment to 585 Kendall, Novo Nordisk committed to hundreds of thousands of square feet of R&D and manufacturing space, and even today, with no signs of immediate turnaround, Biogen is committing to more than half a million square feet in Kendall Square. The talent, innovation, financing, and commitment all remain within the Commonwealth to continue its advancements for the foreseeable future.
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For more information please contact:
Mark Fallon, Director of Research & Strategy | mfallon@hunnemanre.com
