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Three years ago, in the depths of the pandemic, only around 1 percent of existing lab space in the region was vacant or available via sublease. Today, commercial real estate brokerage Colliers reported last week, that number is 21.5 percent, and vacancies are expected to grow in the coming months as more buildings open. For comparison, the availability rate for office space in Greater Boston is 22.7 percent.
There are fundamental differences between the lab and office markets — notably the fact that most lab work, unlike office work, needs to be done in person. But the sharp rise in lab vacancies is a stark reminder of how quickly fortunes can change for a hot industry, even a still thriving one like Boston’s biotechs.
The amount of Greater Boston lab space that is occupied by tenants has climbed by more than one-fifth over the last two years. But this wave of new construction and office-to-lab conversions means the amount of vacant space has climbed even faster, hitting an all-time high of 11 million square feet. And for lab landlords, the scene will likely get worse before it gets better.
“We haven’t seen vacancies peak yet,” said Colliers research director Jeffrey Myers. “Once they start to turn the corner, it could take years … to get back to something we would consider more of a normal market.”
Several factors are driving the sudden shift.
Back when lab space was impossible to find, pent-up demand prompted many developers to bet on life sciences projects “on spec,” or without commitments from tenants. At the time, many local biotechs often took whatever lease they could find, sometimes renting considerably more than they needed. Meanwhile, money poured into the region’s biotech scene from venture capitalists hoping for a big payout, through an initial public offering, or from a sale to a much larger drug company, fueling demand for real estate. As a result, lab projects sprouted all over the region.
Now, many of those shiny new buildings are hitting the market — the amount of lab space in the northwestern suburbs along Route 128, for example, essentially doubled in the past five years. The small firms that took on more space than they needed are now looking to sublease some of it. The IPO machine has slowed considerably, as has the flow of cash from VC firms. And several significant players, including Takeda and Ginkgo Bioworks, have announced layoffs in recent months.
“It’s a correction from the sugar high we had during COVID when everybody was piling money into anything that said ‘life sciences,’” said Bob Coughlin, an executive at real estate brokerage JLL’s Boston office who specializes in lab deals.

The slowdown is evident all over Greater Boston. Myers rattled off a few examples topping 400,000 square feet in size, from the former John Hancock headquarters at 601 Congress St. in the Seaport that was renovated into labs but remains empty, to the former Tufts Health Plan headquarters in Watertown, also converted and empty. A similarly sized building just went up across from the Leader Bank Pavilion in the Seaport — also vacant. Lab plans have been shelved for a former auto dealership site in Needham and at the Riverside train terminal in Newton, while construction was even halted midstream on a lab building going up along McGrath Highway in Somerville.
Factor in the buildings that are under construction, and the region’s lab availability rate approaches 32 percent, according to JLL. In total, nearly 5 million square feet of labs opened in just the first six months of 2024 across Greater Boston, per JLL’s research, with only one-fifth of that newly built space already leased.
Empty floors even abound in the industry epicenter of Kendall Square. There was less speculative building in Kendall — most new buildings there are preleased to big tenants such as AstraZeneca, the Broad Institute, and Takeda. But Colliers notes a record amount of lab space is on the market now in Cambridge: 3.6 million square feet, most of it in or near Kendall.
Beth O’Neill Maloney, head of the Kendall Square Association, doesn’t sound worried. Kendall is as vibrant as it’s ever been, she said, and the empty space could allow more startups to expand there.
“It’s the normal ebb and flow as we build and fill, I’m pretty confident about that,” Maloney said. “Zero percent vacancy rate probably isn’t the healthiest for us. … The availability of some sublease space actually helps some early-stage companies grow here, thrive, and take root.”
Advocates for the industry say the empty space underscores the need for the Legislature to pass an economic development bill that would allocate roughly $100 million a year for life sciences, essentially reauthorizing two previous rounds of state assistance. The House and Senate could not reach an agreement on the bill before regularly scheduled formal sessions ended for the year on Aug. 1. The Massachusetts Biotechnology Council sent a letter last week to legislative leaders, urging them to bring lawmakers back for a special formal session to pass the bill as soon as possible, as Governor Maura Healey has requested.
“My hope would be there’s a sense of urgency,” said Ben Bradford, a vice president at MassBio. “This is a great tool for the state to recruit companies or to keep companies here.”
Still, the sharp surge in vacancies has provided welcome relief to all the smaller biotechs that had been jockeying for space. Coughlin, the JLL executive and former head of MassBio, has been working through a planned vacation this week to keep up.
“I’m doing predominantly tenant work, and I’m as busy as I can be,” Coughlin said. “I don’t like being this busy in August, but I am.”

Jon Chesto can be reached at jon.chesto@globe.com. Follow him @jonchesto.
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A Boston nightclub where a woman collapsed on the dance floor and died last month will have its entertainment license reinstated after the Boston Licensing Board found no violations Thursday.
Anastaiya Colon, 27, was at ICON, a nightclub in Boston’s Theater District, in the early hours of Dec. 21 when she suffered a fatal medical episode. Following the incident, her loved ones insisted that the club’s staff did not respond professionally and failed to control crowds.
City regulators suspended ICON’s entertainment license pending an assessment of any potential violations. During a hearing Tuesday, they heard from attorneys representing the club and people who were with Colon the night she died.
As EMTs attempted to respond, crowds inside the club failed to comply with demands to give them space, prompting police to shut down the club, according to a police report of the incident. However, the club and its representatives were adamant that staff handled their response and crowd control efforts properly.
Kevin Montgomery, the club’s head of security, testified that the crowd did not impede police or EMTs and that he waited to evacuate the club because doing so would have created a bottleneck at the entrance. Additionally, a bouncer and a bartender both testified that they interacted with Colon, who ordered one drink before collapsing, and did not see any signs of intoxication.
Angelica Morales, Colon’s sister, submitted a video taken on her phone to the board for them to review. Morales testified Tuesday that the video disproves some of the board’s claims and shows that ICON did not immediately respond to the emergency.
“I ran to the DJ booth, literally bombarded everybody that was in my way to get to the DJ booth, told them to cut the music off,” Morales said. “On my way back, the music was cut off for a minute or two, maybe less, and they cut the music back on.”
Shanice Monteiro, a friend who was with Colon and Morales, said she went outside to flag down police officers. She testified that their response, along with the crowd’s, was inadequate.
“I struggled to get outside,” Monteiro said. “Once I got outside, everybody was still partying, there was no type of urgency. Nobody stopped.”
These factors, along with video evidence provided by ICON, did not substantiate any violations on the club’s part, prompting the licensing board to reinstate their entertainment license at a subsequent hearing Thursday.
“Based on the evidence presented at the hearing from the licensed premise and the spoken testimony and video evidence shared with us from Ms. Colon’s family, I’m not able to find a violation in this case,” Kathleen Joyce, the board’s chairwoman, said at the hearing.
However, Joyce further stated that she “was not able to resolve certain questions” about exactly when or why the club turned off the music or turned on the lights. As a result, the board will require ICON to submit an emergency management plan to prevent future incidents and put organized safety measures in place.
“This plan should outline detailed operational procedures in the event of a medical or any other emergency, including protocols for police and ambulance notification, crowd control and dispersal, and procedures regarding lighting and music during an emergency response,” Joyce said.
Though the club will reopen without facing any violations, Joyce noted that there were “lessons left to be learned” from the incident.
“This tragedy has shaken the public confidence in nightlife in this area, and restoring that confidence is a shared obligation,” she said. “People should feel safe going out at night. They should feel safe going to a club in this area, and they should feel safe getting home.”
Keeana Saxon, one of three commissioners on the licensing board, further emphasized the distinction Joyce made between entertainment-related matters and those that pertained to licensing. Essentially, the deciding factor in the board’s decision was the separation of the club’s response from any accountability they may have had by serving Colon liquor.
“I hope that the family does understand that there are separate procedures for both the entertainment and the licensing, just to make sure that on the licensing side, that we understand that she was only served one drink and that it was absolutely unforeseeable for that one drink to then lead to some kind of emergency such as this one,” Saxon said.
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In the middle of Michelle Wu’s orchestrated inaugural celebration, prosecutors described a senseless hospital horror that unfolded at Boston Medical Center – a rape of a partially paralyzed patient allegedly by a mentally ill man allowed to freely roam the hospital’s hallways.
It happened in September in what is supposed to be a safe haven but too often is a dangerous campus. Drug addicts with needles frequently openly camp in front of the hospital, and in early December a security guard suffered serious injuries in a stabbing on the BMC campus. The alleged assailant was finally subdued by other security guards after a struggle.
In the September incident, prosecutors described in court this week how the 55-year-old alleged rapist Barry Howze worked his way under the terrified victim’s bed in the BMC emergency room and sexually assaulted her.
“This assault was brutal and brazen, and occurred in a place where people go for help,” Suffolk County prosecutor Kate Fraiman said. “Due to her partial paralysis, she could not reach her phone, which was under her body at the time.”
Howze, who reportedly has a history of violent offenses and mental illness, was able to flee the scene but was arrested two days later at the hospital when he tried to obtain a visitor’s pass and was recognized by security. Howze’s attorney blamed hospital staff for allowing him the opportunity to commit the crime and some city councilors are demanding answers.
“This was a horrific and violent sexual assault on a defenseless patient,” Councilor Ed Flynn said. “The safety and security of patients and staff at the hospital can’t be ignored any longer. The hospital leadership must make immediate and major changes and upgrades to their security department.”
Flynn also sent a letter to BMC CEO Alastair Bell questioning how the assailant was allowed to commit the rape.
Where is Wu? She was too busy celebrating herself with a weeklong inaugural of her second term to deal with the rape at the medical center, which is near the center of drug-ravaged Mass and Cass.
If the rape had happened at a suburban hospital, people would be demanding investigations and accountability.
But in Boston, Wu takes credit for running the “safest major city in the country” while often ignoring crimes.
Wu should intervene and demand better security and safety for the staff and patients at BMC.
Although the hospital is no longer run by the city, it has a historic connection with City Hall. It is used by Boston residents, many of them poor and disabled or from marginalized communities. She should be out front like Flynn demanding accountability from the hospital.
Boston Medical Center, located in the city’s South End, is the largest “safety-net” hospital in New England. It is partially overseen by the Boston Public Health Commission, whose members are appointed by the mayor.
BMC was formed in 1996 by the Thomas Menino administration as a merger between the city-owned Boston City Hospital, which first opened in 1864, and Boston University Medical Center.
Menino called the merger “the most important thing I will do as mayor.”
When he was appointed CEO by the hospital board of trustees in 2023, Bell offered recycled Wu-speak to talk about how BMC was trying to “reshape” how the hospital delivers health care.
“The way we think about the health of our patients and members extends beyond traditional medicine to environmental sustainability and issues such as housing, food insecurity, and economic mobility, as we study the root causes of health inequities and empower all of our patients and communities to thrive,” Bell said.
But the hospital has been plagued by security issues in the last few years, and a contract dispute with the nurses’ union. The nurses at BMC’s Brighton campus authorized a three-day strike late last year over management demands to cut staffing and retirement benefits.
Kirsten Ransom, BMC Brighton RN and Massachusetts Nurses Association co-chair, said, “This vote sends a clear message that our members are united in our commitment to make a stand for our patients, our community and our professional integrity in the wake of this blatant effort to balance BMC’s budget on the backs of those who have the greatest impact on the safety of the patients and the future success of this facility.”
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