By Hannah Green – Reporter, Boston Business Journal
Boston Lab Market Sees Second Quarter Uptick Despite High Vacancies
Boston’s life sciences real estate market showed signs of recovery in Q2 2025, with 19 lab leases signed, more than doubling the eight leases recorded in Q1, according to JLL. Notable deals included Mariana Oncology adding 30,000 square feet in Watertown, Isomorphic Labs opening a Cambridge location, and QurAlis Corp. doubling its footprint near Alewife.
While the uptick is encouraging, vacancy rates remain high at around 32%, with several fully vacant buildings across Greater Boston, including 2 Seaport St. and Assembly Innovation Park in Somerville. Overall lab supply continues to exceed demand by approximately eight times, despite total demand increasing from 1 million to 2 million square feet over the past quarter.
Industry experts note that early-stage biotech startups need to return to the market and expand to sustain growth. However, factors like a constricted fundraising environment, federal policy uncertainty, and recent layoffs — 18 life sciences companies impacted 1,300 Massachusetts workers in Q2 2025 alone — continue to weigh on the market.
New lab space development has largely slowed, though conversions of office buildings into labs continue. Recent approvals include 350 Massachusetts Ave. near MIT and a portion of Seaport Boulevard and Atlantic Avenue by Nan Fung Life Sciences Real Estate.
“It’s sort of one step forward, one step back,” said Mark Bruso, head of JLL New England research, reflecting the cautious optimism in Boston’s life sciences real estate market.