BOSTON— Greater Boston’s life sciences market is showing signs of renewed strength, according to Cushman & Wakefield’s Boston BioBeat Mid-Year 2025 report.
Despite facing record-high vacancy rates, the market experienced a sharp uptick in leasing activity during the first half of the year, signaling resilience and continued interest from tenants amid broader economic uncertainty.
Leasing volume through mid-2025 has already reached 95.6% of the total recorded in all of 2024, reflecting a resurgence in activity across the region. The rebound includes a mix of large and mid-sized deals, most notably BioGen’s landmark 585,000-square-foot lease at 75 Broadway in Cambridge—the largest new life sciences lease in over three years. This single transaction marked a major vote of confidence in the Boston/Cambridge market and helped position Cambridge as the leader in transaction volume for the first quarter of the year.
However, activity in Q2 shifted beyond the urban core, with the Route 128 Belt capturing over 40% of leasing volume, indicating growing tenant interest in suburban clusters.
“While supply and demand remain imbalanced in Boston’s life science market, there were notable green shoots that emerged during the first half of 2025,” said Riley McMullan, Senior Research Manager at Cushman & Wakefield. “Leasing velocity is accelerating, with larger tenants committing to long-term space in both Cambridge and suburban clusters. This renewed activity highlights the region’s enduring position as the nation’s premier hub for life sciences innovation.”
Vacancy and Construction Trends
Despite the spike in leasing, overall vacancy rose to a record-high 33.9%, up 710 basis points year-over-year. This increase was driven by the continued delivery of speculative lab space—1.6 million square feet (msf) remains under construction, with nearly 90% of that space still unleased. These pipeline deliveries are expected to exert further pressure on availability through the end of the year.
Nevertheless, East Cambridge continues to outperform the broader market, with a significantly lower vacancy rate of 19.9%, demonstrating the submarket’s sustained appeal to top-tier biotech and pharma tenants.
Stable Rents Reflect Market Confidence
Following a steep decline in 2024, average asking rents have stabilized, ticking up slightly by $0.17 per square foot (psf) in Q2 to $82.51 psf across the region. Notably, rents either held steady or increased in nine of the market’s 19 submarkets, pointing to cautious optimism from landlords.
East Cambridge remains the most expensive market in the region, commanding a 15.9% premium over the average, reinforcing its position as the epicenter of life sciences in the U.S.
While vacancy remains elevated and new supply is still entering the market, Cushman & Wakefield suggests that Boston’s life sciences sector may be nearing a more balanced phase. With fewer projects breaking ground, increased tenant incentives, and strengthening demand, the second half of 2025 may see a gradual alignment between supply and absorption.
Boston continues to rank as one of the top global life sciences clusters, with its concentration of research institutions, medical centers, and biotech talent fueling long-term demand. The latest data underscores not only the market’s short-term volatility but also its long-term viability.
