CBRE

FIGURES|BOSTONMETROLAB|Q42025

Lifesciencemarketfacesrecordvacancy

in2025,eyesrecoveryin2026

28.0%

LabVacancy

$83.56

LabLeaseRate(NNN)

3.4MSF

R&DSpaceUnderConstruction

Note:Arrowsindicatechangefrompreviousquarter.

?TheGreaterBostonLifeSciencemarketsawadecreaseinleasingactivityduringthefourthquartertotaling306,000sq.ft.,adecreaseofover472,000sq.ft.or60%sincelastquarter.

?Thedecreaseinleasing,alongwithasteadyincreaseofsupply,causedover400,000sq.ft.ofnegativeabsorption,bringingthe2025totalto929,000sq.ft.ofcontraction.

?Askingrentscontinuedtheirdownwardtrend,reaching$83.56.sq.ft.NNN,a160basispoints(bps)decreasefromlastquarteranddown620bpssincetheendof2024.

?Vacancyclimbed,reachinganewall-timehighof28.0%.However,thepaceofincreaseslowedduringthequarterduetotheabsenceofnewconstructiondeliveries.

?Lifesciencedemandhasgrown15%sincelastquarter,reaching2.4millionsq.ftacrosstheurbanandsuburbanmarketsofGreaterBoston.

306KSF

QuarterlyLeasingActivity

FIGURE1:LabVacancyvs.LeaseRate

30%

25%

20%

15%

10%

5%

0%

VacancyRate28.0%AverageAskingLeaseRate$83.56

Source:CBREResearch,Q42025

$105

$100

$95

$90

$85

$80

$75

1CBRERESEARCH?2025CBRE,INC.

FIGURES|BostonMetroLab|Q42025

2CBRERESEARCH?2025CBRE,INC.

TheGreaterBostonlifesciencemarketfacedheadwindsthatbeganseveralyearsago.In2025,

themarketrecordeditshighestlevelofnegativeabsorptioninatleasttwodecades,andvacancyclimbedtoanall-timehighof28%,.Theindustryisgrapplingwithdecreasedfundingfrombothpublicandprivatesources,elevatedinterestratesanduncertaintysurroundingregulatory

changes.Atleast13companiesannouncedlayoffsinthefourthquarteralone—adeclinefrom27inthepreviousquarter.Despitethesechallenges,theSPDRS&PBiotechETF(XBI)climbed

steadilythroughouttheyear,ending2025atapricenotseensincelate2021.Aspublic

companiesshowsignsofimprovement,theGreaterBostonlifesciencesectorisapproaching2026cautiously,withanoutlooktowardstabilizationandeventualgrowth.

Thefourthquartersawasignificantslowdowninleasing,totalingjust306,000sq.ft.across15deals,comparedtoanaverageof914,000sq.ft.across21dealsoverthepreviousseven

quarters.Theabsenceofalargetransactionhinderedoverallactivity.Sinceearly2024,the

largestdealeachquarteraveragednearly300,000sq.ft.,whereasthelargestdealinthefourthquarterwasonly58,000sq.ft.Leasingwasconcentratedintwomajorsubmarkets:East

Cambridge,whichrecorded106,500sq.ft.,and128West,whichincludesWatertown,Waltham,andLexington,andsaw185,500sq.ft.Seaporthadaquietquarter,withjustonedealtotaling14,000sq.ft.Theslowdowninleasing,combinedwithseveralblocksofspacereturningtothemarket,resultedinover400,000sq.ft.ofnegativeabsorptionduringthequarter.Notably,

AstraZeneca’ssoon-to-be-formerheadquartersinWalthamhitthemarketandwillbereadyforoccupancyfollowingtheirrelocationtoKendallSquareinlate2026orearly2027.

Asthemarketbattleselevatedavailabilityandvacancylargelyduetothesurgeinnew

constructionoverthepastthreeyearsandbroadmacroeconomicpressures,askingrentsacrossGreaterBostonhavefaceddownwardpressure.Rentspeakedinmid-2022at$101.85persq.ft.NNNwhenvacancywasjust1.2%.Bytheendof2025,rentshadfallen18%to$83.56persq.ft.

NNN,similartothelevelslastseeninlate2020andearly2021beforeconstructionactivityaccelerated.

ThelargestleaseofthequarterwasinWatertown,whereLabSharesexpandeditsfootprint,

signingfornearly58,000sq.f.ttoopenanewsharedlabincubator.ComingfromLabShares’primarysiteinNewton,DashBioalsosignedanotabledealfor24,000sq.ft.atPhase3’s21

Hickoryproperty.InCambridge,severaldealsweresignedatAlexandriaRealEstateEquities’TechnologySquaremegacampus,includingMeridaBioscience,JudoBiosciences,andPrecedeBio.

FIGURE2:HistoricalAbsorption

Sq.Ft.inMillions

5

4

3

2

1

-

(1)

(2)

uCambridgeLabuBostonLabu128WestLab

2010201120122013201420152016201720182019202020212022202320242025

Source:CBREResearch,Q42025

FIGURES|BostonMetroLab|Q42025

3CBRERESEARCH?2025CBRE,INC.

TenantdemandacrossGreaterBostonincreased15%inthefourthquarter,totaling2.4million

sq.ft.Thenumberoftenantsseeking25,000to50,000sq.ftgrewby50%,whileaggregatesquarefootageforthisgrouprose56%.Tenantsunder15,000sq.ft.alsosawsignificant

growth,increasing27%bycountand17%bysquarefootage.

CapitalMarkets

Aswelookatthebalanceof2026,theCBREBostonteamprojectsadecisivebreakinthe

transactionstalemate.Ownersandlendersareshiftingfrompreservationtoresolution,

narrowingthebid-askspreadthroughpricingresetsratherthanaggressiveunderwriting.Akeydriverofthisliquiditywillbethematurityofloanextensions,forcinglender-facilitated

outcomesamidheightenedregulatoryoversight.Thiswaveofactivityiscritical:itcreatesthepricetransparencyrequiredforamarketbottom.Forcapitalreadytodeploy,thewindowisnowopenforgenerationalacquisitionsataresetbasis.

Cambridge

TheCambridgelabmarketrecorded24,000sq.ft.ofnegativeabsorption,whichbringsthe

totalabsorptionfor2025to478,000sq.ft.ofcontraction.Thenegativeabsorptioncaused

availabilitytoincreaseby20bpsto26.7%,whilevacancysawasteeperincreaseof120bpsto23.2%.Askingrentsrespondedtothesoftnessinthemarket,decreasing200bpssincelast

quarterto$91.37persq.ft.NNN.Cambridgewashometo34%oftheleasingseenacrossthemarketduringthequarter,witheightdealstotaling106,000sq.ft.

EastCambridgerecordedpositiveabsorptionduringthelastquarteroftheyear,posting51,000sq.ft.ofgrowth,butstillendedtheyearwith185,600sq.ft.ofcontraction.Thepositive

absorptionwasdrivenbystrongleasing,primarilyatTechnologySquare,aswellasDeep

Genomicstakinga14,000sq.ft.suiteatOneCanal.Thedealssignedduringthequarterweresmallerthanthehistoricalaverageoverthelasttwoyearsbutstilloutpacedanynewspacesthatbecameavailable.Thepositiveabsorptioncausedavailabilitytodeclineby40bpsto

20.8%,butvacancyclimbed,increasingby80bpsto18.0%.Askingrentscontinuedtheir

downwardtrend,hitting$101.60persq.ft.NNN,adeclineof90bpsfromthepreviousquarter.

BothMidandWestCambridgerecordednegativeabsorptionduringthelastquarteroftheyear.MidCambridgesaw53,000sq.ft.ofcontraction,whileWestCambridgesaw22,800sq.ft.

ThesesmallersubmarketswithinCambridgeareexperiencinghighervacancythanthecore

FIGURE3:CambridgeLabMarketStatistics

CambridgeLab

Bldgs

TotalSqFt

Available

(%)

Vacant

(%)

Sublease

(%)

Quarter

Absorption

YTDAvgAskingRent

Absorption

($NNN)

Cambridge-East

59

14,195,815

20.8

18.0

5.9

51,388

(185,623)

101.60

Cambridge–Mid

36

3,593,556

33.2

25.7

10.9

(52,934)

(276,207)

88.82

Cambridge–West

28

2,601,861

49.6

48.6

9.6

(22,836)

(17,168)

75.73

OverallCambridgeLab

123

20,391,232

26.7

23.2

7.2

(24,382)

(478,998)

91.37

Source:CBREResearch,Q42025

FIGURE4:CambridgeSubmarketBoundaryMap

Note:CBREre-drewsubmarketboundariesbetweenEastandMidCambridgeresultinginchangestostats,bothtothecurrentQ1statsandhistorical.MassachusettsAvenueisnowthedividinglinebetweenEastandMidCambridge

FIGURES|BostonMetroLab|Q42025

4CBRERESEARCH?2025CBRE,INC.

EastCambridgesubmarket,withMidCambridgevacancyincreasing160bpsto25.7%

sincelastquarterandWestCambridgevacancyclimbing320bpsto48.6%.Askingrentsinbothsubmarketsfell350bpsand200bps,respectively.

Boston

Bostonhadanothersubduedquarter,withonlyonedealsignedfor14,000sq.ft.in

Seaportand21,000sq.ft.ofnegativeabsorption.Overthepasteightquarters,Bostonhasseen3.6millionsq.ft.ofnewconstructiondeliveries,pushingvacancyfrom7.6%attheendof2023toanall-timehighof28.5%attheendof2025.Nonewdeliveries

occurredinthefourthquarter,resultinginaslightvacancydecreaseof20bps—thefirstdropsinceearly2023.Rentsdeclined,fallingto$87.17persquarefootNNN.

Seaportwashometotheonlydealinthecityduringthequarter,asLivingProoftookaflooratPhase3’srecentlyconverted12Farnsworthproject,totaling14,000sq.ft.The

submarketrecordedflatabsorption,withasmuchspacecomingontothemarketaswasleased,resultinginonly677sq.ft.ofnegativeabsorption.Throughouttheyear,Seaportrecorded31,000sq.ft.ofpositiveabsorption,itsfirstfullyearofgrowthsince2022.

Seaportavailabilityandvacancywerevirtuallyunchangedcomparedtothepriorquarterat39.1%and38.6%,respectively.Askingrentsdroppedto$87.10persquarefootNNN,down22.1%fromtheirpeakinearly2021.

FIGURE5:BostonLabMarketStatistics

BostonLab

Bldgs

TotalSqFt

Available

(%)

Vacant

(%)

Sublease

(%)

Quarter

Absorption

YTDAvgAskingRent

Absorption

($NNN)

Seaport

21

5,647,114

39.1

38.6

10.1

(677)

31,076

87.10

Fenway/KenmoreSquare

6

1,910,588

41.6

24.9

1.7

(23,214)

(18,431)

94.68

NorthStation/Waterfront

2

579,090

0.0

0.0

0.0

0

0

-

Charlestown/EastBoston

7

1,481,894

25.9

21.8

5.8

0

(61,139)

55.01

Dorchester/SouthBoston

7

1,552,364

29.0

28.3

4.4

0

14,745

82.14

Allston/Brighton/Longwood

12

4,146,744

34.1

21.4

1.1

2,900

(43,977)

92.78

Other

6

930,188

50.4

34.5

4.4

0

(21,300)

-

OverallBostonLab

61

16,247,982

35.2

28.5

5.2

(20,991)

(99,026)

87.17

Source:CBREResearch,Q42025

FIGURE6:DirectAverageAskingRentsbySubmarket

$140

$120

$100

$80

$60

$40

$20

$0

$97.81

$71.60

$89.53$77.43

East&MidCambridgeSeaport&FenwayWestCambridge&Waltham&Lexington

Watertown

Source:CBREResearch,Q42025

FIGURES|BostonMetroLab|Q42025

5CBRERESEARCH?2025CBRE,INC.

Suburban

ThesuburbanlifesciencemarketofGreaterBostonrecordedover361,000sq.ft.ofnegativeabsorptionduringthefourthquarter,breakingastreakofback-to-back

positivequarters.2025asawholesawnearly350,000sq.ft.ofnegativeabsorption.Thenegativeabsorptioncausedavailabilitytoincrease190basispoints(bps)to

36.0%sincelastquarter,whilevacancyslightlydecreasedby30bpsto32.5%.

Availablesubleasespaceinthesuburbsheldsteadyat5.4%.Similartotherestofthemarket,rentsdeclined,dropping100bpssincelastquarterto$75.05persq.ft.NNN.

TheinnersuburbancityofWatertownrecorded85,700sq.ft.ofpositiveabsorptionbecauseofstrongleasingactivity.Thecityhadthestrongestyearintermsof

absorptionacrossGreaterBoston,recording222,000sq.ft.ofpositiveabsorption,andwashometothetwolargestleasesofthefourthquarter.Despitethestrongyearofabsorption,availabilityremainedelevated,ending2025at45.1%,whichisdown910bpsfromthepeak.Vacancywashighaswell,endingtheyearat43.9%.

Likeeveryothersubmarketintheregion,askingrentshavedeclinedduetotheelevatedavailabilityandvacancy.Askingrentsfell110bpssincelastquarterto$78.84persq.ft.NNN.

ThecoresuburbancitiesofWalthamandLexingtonendedtheyearonatoughnote,postingover450,000sq.ft.ofcontraction.Themaindriverofthenegative

absorptionwasAstraZeneca’ssoon-to-beformercampusinWalthambecoming

availableupontheirmovetoKendallSquare.Thisnewlargeblockofspacecausedavailabilitytoincrease610bpsto31.1%,whilevacancysawaslightincreaseof40bpsto23.5%.Askingrentsremainedflat,endingtheyearat$71.60persq.ft.NNN.

FIGURE7:SuburbanLabMarketStatistics

SuburbanLab

Bldgs

TotalSqFt

Available

(%)

Vacant

(%)

Sublease

(%)

Quarter

Absorption

YTD

Absorption

AvgAskingRent

($NNN)

Close-InSuburbsNorth

10

2,774,802

70.4

69.1

0.5

0

(10,044)

81.38

Route128-North

10

1,231,022

47.4

47.4

7.1

5,073

71,639

62.73

Route495-Northeast

1

120,330

56.0

56.0

0.0

0

15,999

58.00

Route3-North

24

2,284,960

18.1

18.1

3.5

0

5,092

60.00

MetroNorth

45

6,411,114

47.1

46.5

2.8

5,073

82,686

75.45

Route128-West

84

10,971,658

36.7

30.9

8.1

(366,668)

(450,053)

75.24

Framingham-Natick

11

845,640

2.1

0.0

0.0

0

0

60.00

Route495-MassPikeWest

14

1,465,228

2.1

1.2

0.0

0

17,696

-

MetroWest

109

13,282,526

30.7

25.7

6.7

(366,668)

(432,357)

74.64

OverallSuburbanLab

154

19,693,640

36.0

32.5

5.4

(361,595)

(349,671)

75.05

Source:CBREResearch,Q42025

FIGURE8:LabLeasingActivity

MillionsSq.Ft.

8

6

4

2

0

201720182019202020212022202320242025

uUrbanuInnerSuburbanuSuburban

Source:CBREResearch,Q42025

FIGURES|BostonMetroLab|Q42025

6CBRERESEARCH?2025CBRE,INC.

FIGURE9:TransactionsofNote

TENANT

ADDRESS

SQ.FT.

SUBMARKET

TYPE

LabShares

66GalenStreet,Watertown

57,882

128West

New

Camp4Therapeutics

100TalcottAvenue,Watertown

44,800

128West

New

DashBio

21HickoryDrive,Waltham

24,000

128West

New

Innoviva

20MaguireRoad,Lexington

22,800

128West

New

MiltenyiBiotec

830WinterStreet,Waltham

18,500

128West

New

JudoBiosciences

200TechnologySquare

18,400

EastCambridge

New

LivingProof

12FarnsworthStreet

14,000

Seaport

New

Source:CBREResearch,Q42025

FIGURE10:BostonMetroLifeScienceVentureCapitalFunding

QuarterlySum4-qtrRollingSum

$18

$16

$14

$12

Billions($USD)

$10

$8

$6

$4

$2

$0

Source:PitchBook.Q32025.

FIGURES|BostonMetroLab|Q42025

MarketAreaOverview

Definitions

AVERAGEASKINGLEASERATE:RatedeterminedbymultiplyingtheaskingNNNleaserateforeachbuildingbyitsavailablespace,summingtheproducts,thendividingbythesumoftheavailablespacewithnetleasesforall

buildingsinthesummary.GROSSLEASES:Includesallleasetypeswherebythetenantpaysanagreedrentplus

estimatedaveragemonthlycostsoftheoperatingexpensesandtaxesfortheproperty,includingutilities,insuranceand/ormaintenanceexpenses.NETABSORPTION:Thechangeinavailablesq.ft.fromoneperiodtothenext,asmeasuredbyavailablesq.ft.NETRENTABLEAREA:Thegrossbuildingsquarefootageminustheelevatorcore,

flues,pipeshafts,verticalducts,balconiesandstairwellareas.OCCUPIEDAREA(SQ.FT.):Buildingareanot

consideredvacant.UNDERCONSTRUCTION:Buildingsthathavebegu