Boston, MA — The Boston-Cambridge life sciences market saw vacancy rise in the second quarter of 2026 as new lab space continued to outpace demand, while several other major U.S. life sciences hubs showed signs of stabilization, according to a new Savills report.
The Boston-Cambridge market recorded an overall vacancy rate of 26.4 percent in the second quarter, up 610 basis points from a year earlier. Savills said the increase was driven largely by the delivery of about 2.5 million square feet of new life sciences space.
The report also pointed to continued pressure on biotechnology companies. Lyra Therapeutics terminated leases at facilities in Watertown and Waltham after failed drug trials and workforce reductions, resulting in about $4 million in lease termination costs and forfeited deposits.
Despite the weaker leasing environment, some development is moving forward. CBSET plans to build a 110,000-square-foot life sciences facility in Waltham at the former Sanofi Genzyme campus, with completion expected in the fourth quarter of 2026. The facility will support the company’s expansion and relocation from Lexington.
Nationally, Savills said life sciences markets are showing uneven performance as developers, investors and tenants adjust to shifting conditions.
Philadelphia remained one of the strongest U.S. markets, with an overall vacancy rate of 7.3 percent, among the lowest in the country despite a modest year-over-year increase. Raleigh-Durham also improved, with vacancy falling to 23.1 percent as available space declined by 1.3 million square feet. The region also landed one of the year’s largest manufacturing investments after AbbVie announced plans for a $1.4 billion pharmaceutical manufacturing campus in Durham.
Denver-Boulder and Chicago also reported year-over-year vacancy declines. Denver-Boulder’s vacancy rate fell to 23.8 percent from 27 percent a year earlier, while Chicago’s vacancy declined to 37.6 percent.
Several major life sciences hubs continued to face elevated availability. The San Francisco Bay Area’s vacancy rate rose to 26.2 percent, partly due to more than 500,000 square feet of newly delivered lab space. In New York, vacancy edged up to 32.5 percent even as artificial intelligence continued to attract investment, including Anthropic’s reported $400 million acquisition of Coefficient Bio.
Northern New Jersey posted one of the largest increases, with vacancy rising to 24.4 percent from 15.5 percent a year earlier as large blocks of lab space entered the market. Seattle’s vacancy also increased to 19 percent amid continued additions to inventory.
San Diego’s vacancy remained relatively stable at 28.1 percent, supported by ongoing investment in research facilities, including Pfizer’s opening of a 230,000-square-foot oncology research and development center.
The Washington, D.C., metro area remained one of the healthier life sciences markets, with a vacancy rate of 14.1 percent, while Baltimore continued to attract investment through new research facilities and biotechnology startups.
Savills said many markets are still absorbing significant amounts of newly delivered lab space, but long-term investment in research, pharmaceutical manufacturing and biotechnology innovation remains strong across the country’s leading life sciences clusters.
