22Q4 Boston Lab Market Report

Key Takeaways

Net absorption was positive in 2022, but demand prospects have weakened.
Venture capital/pre-IPO funding levels remain healthy.
At 8%, vacancies are at their highest point since 2014, and an all-time high of 1.4 million square feet of sublease space is on the market.
Millions of square feet of yet-to-be committed space is moving forward.

With a net of more than two million square feet of additional occupied space in 2022, the metro’s life sciences sector expanded for the ninth consecutive year. The metro continues to appeal to companies at all stages, and these firms are landing substantial venture capital/pre-IPO investments. With about $9 billion brought in by 200-plus local companies, 2022 was a healthy fundraising year.

Leasing conditions are shifting in favor of tenants. The amount of available space has increased in Boston, Cambridge and the Suburbs to an overall availability rate of 8%, seven percentage points higher than its 2021 low point. Sublease space at record-high levels has attracted companies looking for short-term solutions. Rising vacancies are reducing upward pressure on rents.

22Q4 Boston Lab Market Report

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Related Experts

Jeffrey Myers

Research Director

Boston

+1 617 330 8148

As Research Director, Jeff Myers leads the research operation of the Boston office of Colliers. A 20-year industry veteran, Jeff brings an extensive commercial real estate background that includes expertise in city planning, market research, landlord representation and more.

Since joining Colliers in September 2021, he has focused on synthesizing real estate, demographic, and economic variables to support brokers and provide clients with strategic and actionable insights. In addition to tracking and analyzing pertinent trends, Jeff leads the production of quarterly reports highlighting activity in the market.

Prior to joining Colliers, Jeff held the position of Deputy Director of Portfolio & Asset Management at Massport, the port authority in the Commonwealth of Massachusetts. During his time with the organization, he and his team managed 9+ million square feet of commercial real estate across 500 acres. Jeff was heavily involved in lease negotiations, leasing strategies, tenant relations and market research to aid stakeholders by providing critical information needed for their decision-making processes.

Before joining Massport, Jeff spent more than 11 years as a consultant and real estate economist at CoStar Portfolio Strategy. While there he developed extensive knowledge of the commercial real estate business as well as strong skills in client engagement and industry analysis. During his tenure with CoStar, Jeff provided strategic advice to institutional real estate investors across multiple sectors and geographies. Jeff also has municipal city planning experience in Indiana and Georgia.

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Kelly Doonan

Research Analyst

Boston

+1 617 330 8062

I joined Colliers' Boston office as a Research Analyst in 2021. In this position, I contribute to the creation of the firm's quarterly Market Viewpoints, as well as the distribution of Week in Review, Colliers' weekly newsletter. I also collaborate across various brokerage and advisory teams on client work and presentations, including labor analytics and market trend analyses.

I assist in managing and upkeeping Colliers' Boston proprietary research database, which contains data on over 360 million square feet of commercial space in approximately 4,000 buildings in the Greater Boston area and the insights it delivers. I work with the rest of the research team to provide reliable data that proves critical when making well-informed market decisions.

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