Key Highlights
Lab availability has fallen ~2 million SF since mid-2025 — a decade-best quarterly drop.
Demand across Boston, the Bay, San Diego and Raleigh-Durham up ~44% YoY to ~8M SF.
Yet aggregate vacancy across the big three markets still sits near 32%.
Direct-relocation lease terms have compressed to ~62 months, ~30% shorter than peak.
AI, robotics and "tough-tech" users now ~30% of Boston lab leases — triple the 2021 share.
The Signal
The sector has bottomed on demand but not on landlord economics.
Newer (post-2020) buildings are absorbing; pre-2000 stock is still bleeding.
The tenant, not the landlord, holds pricing power.
Two truths are running at once. Take-up is genuinely recovering as biotech funding thaws and biomanufacturing reshores. But a 32% vacancy overhang means landlords are still buying occupancy with free rent and move-in-ready capital.
The split is by vintage. Buildings delivered since 2020 have shed availability; older assets keep adding it. This is a flight-to-quality market where the recovery accrues to specific buildings, not the sector.
The wildcard is tenant mix. Nearly a third of Boston lab leasing now comes from AI and robotics firms — a demand source that didn't underwrite the last development wave and may not renew like a biotech would.
Implications
Owners of trophy, new-vintage lab in top clusters are past the worst. Owners of commodity or older product face more mark-to-market pain and should underwrite concessions, not headline rents. For buyers, the entry point is real — but only where the rent roll skews new-build and credit tenancy.
Key Takeaway
Life science bottomed for tenants first; landlords of the wrong vintage are still on the way down.
Source: JLL / Bisnow / Propmodo — Q1–H1 2026 data · July 2026
