​​Boston BioBeat Q3 2024

Availability rates continued to climb across Greater Boston during the third quarter, reaching a new high of 30.0%, a 160-basis point (bps) increase quarter-over-quarter (QOQ) and a 1,310-bps increase year-over-year (YOY). Availability in both the Urban Ring and 495 Belt more than doubled YOY, with the Urban Ring jumping to 52.0% amidst an influx of newly delivered, unleased space. 

Overall absorption gains totaled 603,000 square feet (sf), fueled by three tenants taking occupancy of spaces larger than 150,000 sf, offsetting the 1.2 million square feet (msf) of vacant deliveries during the quarter. 

Nearly 1.5 msf of new product delivered during Q3 2024, more than double the prior quarter's total, boosting year-to-date (YTD) construction completions to  4.0 msf. Of this total, only a quarter is currently leased. 

Third quarter demand totaled nearly 183,000 sf. While this marked a substantial 31.7% increase QOQ, it trails the total posted over the same period in 2023 by 62.3%. Lifemine Therapeutics inked the largest new deal of the quarter, taking 56,000 sf at 66 Galen Street in Watertown, which accounted for 30.9% of new leasing activity. The Urban Ring led the market for YTD demand, recording 261,500 sf of activity. 

Renewal activity totaled 620,000 sf during Q3, with Vertex opting to maintain its 556,000-sf lab footprint in the Seaport comprising the bulk of this total. 

Though the market's direct average asking rate dipped QOQ to $91.20 per square foot (psf) during Q3, it marked an increase of 2.0% YOY. The 495 Belt recorded the largest YOY decrease, down $3.19 psf to $59.09 psf.