Boston Metro Life Science Figures Q3 2026

The Greater Boston lab market slipped back in Q3 2026. Net absorption was negative 168,430 sq. ft., reversing a barely positive Q2. Vacancy rose 20 bps to 28.9% and availability rose 30 bps to 33.1%, both near cycle highs. Asking rents fell to $77.97 per sq. ft. NNN, down 8.1% year-over-year, and rising concessions mean effective rents are falling faster. Leasing totaled 708,446 sq. ft., down 21.1% from Q2, though year-to-date leasing is up 20%, driven by renewals.

Cambridge drove the decline with 307,103 sq. ft. of negative absorption as large subleases hit the market. Mid Cambridge availability reached 59.3%, and East Cambridge rents have fallen 18 straight quarters. The suburbs offset part of the loss with 151,858 sq. ft. of positive absorption, led by Somerville, where MassGeneral Hospital signed 105,000 sq. ft. The 924,000 sq. ft. construction pipeline is fully preleased to pharma, and some projects are pivoting away from lab. Demand signals are improving, with $2.1 billion in Q3 venture capital and an increase in public offerings but smaller VC-backed tenants have yet to return.