Disruption 2020 - Q3 Lab Update

By Aaron Jodka | October 2020

Greater Boston’s life science market is bucking the trends of the area’s office market. Absorption is positive, active tenant requirements are rebounding, and investors want a piece of the action. Here are six takeaways on the third quarter’s lab market:

• Lab vacancies fell in the third quarter, to 6.7% across Greater Boston, while office rose to 15.5%.

• This marks 14 straight quarters of positive lab absorption; year-to-date, it is nearly 700,000 SF.

• Major deals by Bristol-Myers Squibb (360,000 SF) and CRISPR (263,000 SF) demonstrate the strength of the lab market.

• Vacancies got even lower in East Cambridge (0.3%).

• Manufacturing requirements are picking up — challenged by the few existing plug-and-play options today.

• Investors are clamoring to get into this market, while those already here are expanding their holdings.