- Elevated Vacancy Persists:
Overall vacancy remained far above historical averages, and at 14.3% is more than 500 basis points higher than at the same point one year ago. Cambridge remains the market’s tightest geographic cluster at 8.5% vacant, though this represents an increase of 210 basis points QOQ.
- Demand Slows QOQ:
Following the pattern of other asset types, the lab market was quiet during Q2 as new demand totaled just over 305,000 sf – less than one third of Q1’s leasing total.
- Robust Pipeline; Slow Preleasing:
Preleasing in under-construction inventory remained sluggish with just 35.3% of the nearly 15.0 msf currently in development committed. Of the 5.8 msf scheduled to deliver before the remainder of 2023, just 36.3% has been leased.
- Traditional Clusters Remain Dominant:
Of the 54 users currently seeking space in the market, more than half are focused on Cambridge.
- Leader in Venture Capital Investment:
With $3.5B invested YTD, interest in Greater Boston has outpaced all other major North American markets in 2023.