Boston-Cambridge vacancy reaches 26.4% amid new supply, while several major U.S. life sciences hubs show signs of stabilization
BOSTON — The Boston-Cambridge life sciences market continued to face rising vacancy during the second quarter of 2026 as new laboratory space outpaced demand, while other major U.S. markets showed mixed signs of recovery, according to Savills’ latest North American Life Sciences Market Report.
Boston-Cambridge recorded an overall vacancy rate of 26.4% in the second quarter, up 610 basis points from a year earlier. Savills attributed much of the increase to the delivery of approximately 2.5 million square feet of new life sciences space entering the market.
The report also highlighted continued challenges among biotechnology companies. Following failed drug trials and workforce reductions, Lyra Therapeutics terminated leases at its facilities in Watertown and Waltham, resulting in roughly $4 million in lease termination costs and forfeited deposits.
Despite the softer leasing environment, development activity continues. CBSET plans to construct a 110,000-square-foot life sciences facility in Waltham at the former Sanofi Genzyme campus, with completion expected by the fourth quarter of 2026. The new facility will support the company’s expansion and relocation from Lexington.
Nationally, the report found that life sciences markets continue to diverge as developers, investors, and tenants adjust to changing market conditions.
Philadelphia remained one of the nation’s strongest markets, posting an overall vacancy rate of just 7.3%, among the lowest in the country despite a modest year-over-year increase. Raleigh-Durham also showed improving fundamentals, with vacancy declining to 23.1% as available space fell by 1.3 million square feet. The region also secured one of the year’s largest manufacturing investments after AbbVie announced plans for a $1.4 billion pharmaceutical manufacturing campus in Durham.
Denver-Boulder and Chicago also posted year-over-year declines in vacancy, reflecting improving market absorption. Denver-Boulder recorded a vacancy rate of 23.8%, down from 27% a year ago, while Chicago’s vacancy fell to 37.6%.
Several of the country’s largest life sciences hubs, however, continued to experience elevated availability.
The San Francisco Bay Area’s vacancy increased to 26.2%, driven in part by the addition of more than 500,000 square feet of newly delivered laboratory space. In New York, vacancy edged up to 32.5% even as artificial intelligence continued to drive investment activity, highlighted by Anthropic’s reported $400 million acquisition of Coefficient Bio.
Northern New Jersey experienced one of the largest increases, with vacancy rising to 24.4% from 15.5% a year earlier as several large blocks of laboratory space entered the market. Seattle’s vacancy also climbed to 19% amid continued additions to inventory.
Meanwhile, San Diego’s vacancy remained relatively stable at 28.1%, supported by continued investment in research facilities, including Pfizer’s opening of a new 230,000-square-foot oncology research and development center.
The Washington, D.C., metropolitan region remained among the healthiest markets, posting a vacancy rate of 14.1%, while Baltimore continued to attract life sciences investment through new research facilities and biotechnology startups.
According to Savills, while many markets continue to absorb significant amounts of newly delivered laboratory space, long-term investment in research, pharmaceutical manufacturing, and biotechnology innovation remains strong across the country’s leading life sciences clusters.
