- 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.