UK Life Science Marketbeat Reports

For the data behind the commentary, download the full Q1 2025 UK Life Sciences Report

Reflections from our visit to Boston

Earlier this month, Jamie Renison and Harry Blanshard from our UK-based science and innovation real estate team travelled to Boston to gain first-hand insight into the current market sentiment in the world’s leading biotech hub. Their findings revealed a mixed picture of cautious investment sentiment and attractive real estate opportunities.

One of the prevailing themes is the ongoing struggle for funding. The majority of science and innovation companies are in need of capital, yet venture capital firms are largely holding back on deployments. This hesitancy stems from the broader market uncertainty, with investors adopting a ‘wait and see’ approach before committing further funds.

Despite this caution, VCs are still actively assessing opportunities, but their criteria have become increasingly stringent. There is a clear focus on companies with credible data and strong, experienced, leadership teams. The bar has been raised, and only the most robust ventures are making it through the investment committee reviews.

From a real estate perspective, the market in Boston and Cambridge, Massachusetts, presents a stark contrast. There is currently a significant oversupply of lab space, coupled with a notable lack of demand from occupiers. As a result, tenant-friendly deals are now more accessible than ever, offering a unique window of opportunity for companies in a position to act.

The big news comes from Biogen who announced plans to consolidate its Cambridge operations by signing a 15-year lease for approximately 585,000 square feet at 75 Broadway Street, part of the new Kendall Common development. This move will bring together Biogen’s research, development, and commercial teams into a single, state-of-the-art facility, due to open in 2028.

While the general mood across the market is subdued, there are still flickers of optimism. For those with the resources and resilience to navigate the current climate, there is opportunity to secure both capital and space on favourable terms, setting the stage for growth when the market stabilises.