March 2025 Life Sciences Update

Boston HUB MARKET

MARKETS CONTENTS

Market Summary

Public & Private Funding (2024)

Rent vs. Vacancy Comparison

Fast Lab Stats

$ Raised (MM)

• Greater Boston remains an increasingly dominant center of the life sciences industry, with a consistent international audience and an influx of scientists looking to contribute to the thriving environment. • The high concentration of R&D firms in Cambridge, particularly around Kendall Square, coupled with the region’s robust pool of life sciences talent due to its proximity to Harvard, MIT, and other world-renowned institutions, make it one of the most preeminent locations for life sciences activity in the world. • Vacancy hit a record high of 30.3% during the fourth quarter of 2024, as supply continued to outpace demand. Nearly 4.8 msf of new lab product delivered across the market in 2024, 74.2% of which remains available. With construction starts slowing considerably in 2024, market conditions are expected to normalize over the coming year as new inventory is absorbed. • Renewals outpaced new leasing activity in Boston’s life sciences market during 2024, comprising 56.5% of total transaction volume, up considerably from just 6.6% in 2022. Throughout the year, 15 users occupying spaces 50,000 sf or larger inked renewals. • With demand far below historic levels, asking rental rates softened substantially in 2024, falling 10.5% YOY to $82.95 psf. Geographically, the decrease was most pronounced in the Urban Ring, where asking rates fell 11.3% YOY. Meanwhile, the Route 128 Beltway recorded modest growth of 0.5%. • Following a slump in 2023, venture capital (VC) funding rebounded in 2024, totaling $7.9 billion, surpassing the prior year’s total by $220 million. In 2024, six Massachusetts-based biotech firms had IPOs, compared with just two in 2023.

Company

Deal Type

Completed VC Round

$105

0% 3% 6% 9% 12% 15% 18% 21% 24% 27% 30% 33%

47.0 MSF Market Square Footage $82.95 $ Per SF 30.3% Vacancy 109.9K Total Life Sciences Employment 97.1% Life Sciences Employment 10-Year Growth Rate

3rd Round

$95

Treeline Biosciences Early Stage VC Aug 2024

$421.8

$85

Vacancy Rate

Kailera Therapeutics Early Stage VC

Oct 2024 1st Round $400.0

$75

Bicara Therapeutics (NAS: BCAX)

IPO

Sep 2024

$362.3

$65

$55

Cardurion

Later Stage VC

Jul 2024 4th Round $260.0

$45

Zenas BioPharma (NAS: ZBIO)

IPO

Sep 2024

$258.8

$35

Average Asking Rent $/sf

Upstream Bio (NAS: UPB)

IPO

Oct 2024

$255.0

$25

$15

Zenas BioPharma (NAS: ZBIO)

Later Stage VC May 2024 4th Round $200.2

2015 2017 2019 2021

2023

Asking Rents

Overall Vacancy

Sublease Vacancy

Upstream Bio (NAS: UPB)

Early Stage VC

Apr 2024 2nd Round $200.0

Egenesis

Later Stage VC Sep 2024 4th Round

$191.0

Sionna

Later Stage VC Mar 2024 4th Round

$181.9

Representative Investment Sale Transactions (2024)

Life Sciences Labor: Average Monthly Job Postings and Hires

Representative Life Sciences Companies

Address

Type

$/psf

$ MM

RBA SF

Date

Buyer

Company

Type

215 First Street

Lab

$425.86

$161.8

380,000 December 2024 BioMed Realty

3,000

Alnylam

HQ

150 Second Street

Lab

$523.29

$77.3

147,808 December 2024 BioMed Realty

2,500

Biogen

HQ

11 Hurley Street

Lab

$181.08

$10.8

59,783 December 2024 BioMed Realty

2,000

Bristol Myers Squibb

Regional HQ

Representative Lease Transactions (2024)

Foundation Medicine HQ

1,500

Company

Address

City

Size (SF) New/Renewal

Type

Quarter Landlord/ Sublandlord

Moderna Tx

HQ

1,000

Vertex Pharmaceuticals

Novartis

Regional HQ

50 Northern Avenue Boston

556,105 Renewal

Direct

Q3 Diversified Healthcare Trust

500

Pfizer

Regional HQ

ADA Forsyth

Direct

100 Chestnut Street Somerville

76,000 New Lease

Q1

North River Leerink

0

Sanofi

Regional HQ

2020 2021

2022

2023

2024

BPG Bio

300 Third Avenue Waltham 70,000 New Lease

Direct

Q1

Lincoln Property Company

Takeda Ph

Regional HQ

Treeline Biosciences

500 Arsenal Street

Watertown 67,362 Renewal/Expansion Direct

Q2 Alexandria Real Estate Equities

Hires Unique Postings

Vertex Ph

HQ

LifeMine Therapeutics

66 Galen Street

Watertown 56.480 New Lease

Direct

Q3 The Davis Companies

GSK

301 Binney Street

Cambridge

47,747 Renewal

Direct

Q2 Blackstone, Inc.

Top NIH-Funded Institutions (2020-2024 1H)

Bio Degree-Awarding Institutions, Metro Area • Boston University • University of Massachusetts Boston • Harvard University • MIT • Boston College • Northeastern University • Tufts University • Massachusetts College of Pharmacy and Health Sciences

Annual Life Sciences Degree Completions 2013 4,887

Tiax

35 Hartwell Avenue Lexington

46,700 Renewal

Direct

Q1

Anchor Line Partners

$3.0B Massachusetts General Hospital $1.9B Brigham and Women’s Hospital $1.1B Boston Children’s Hospital

ANDE

266 Second Avenue Waltham 46,040 Renewal

Direct

Q1

Anchor Line Properties

Nest.Bio

100 Chestnut Street Somerville

41,000 New Lease

Direct

Q1

North River Company

2023 7,207 Up 47%

GC Therapeutics

610 Main Street

Cambridge

32,688 New Lease

Sublease

Q3 The Bulfinch Companies, Inc.

Skylark Bio

64 Sidney Street

Cambridge 27,000 New Lease

Sublease

Q3 BioMed Realty

Research Contributors

Nicole Salamone nicole.salamone@cushwake.com

Katie Mahoney kathleen.mahoney@cushwake.com

Riley McMullan riley.mcmullan@cushwake.com

Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook

Cushman & Wakefield

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