Boston Metro Life Science Figures Q1 2023

The macroeconomic headwinds that started to break through the Boston metro life sciences market in mid-2022 have shifted the fundamentals in Q1 2023, introducing some uncertainty to the sector. After an unprecedented run beginning at the onset of the pandemic which saw record growth in the sector, the life sciences industry has returned to a more normal pace in 2023, although demand for R&D space remains well below pre-pandemic levels. The current economic environment and recent turmoil in the banking system is causing many tenants to re-evaluate and stretch their cash runway as pressure from difficult fundraising conditions stays top of mind. The first quarter of 2023 saw relatively normal leasing activity, much of which felt like spillover from Q4 2022, as eyes remain on distressed and downsizing companies whose sublet space has flooded the market, leading to a relatively flat quarter in terms of absorption.