Direct vacancy in life-science real estate has begun to stabilize over the past several quarters, but sublease availability continues to rise. Rising sublease space signals potential tenant turnover and underscores that the sector has yet to achieve a sustained rebound in demand. Elevated levels of sublease space can also put downward pressure on market rents, as these spaces are often move-in ready and offered at discounted rates relative to direct space. In 1Q26, roughly 8.5 million SF were available for sublease, up almost 12% from 4Q25. An outsized share of this available space is concentrated in the top three clusters — Boston, San Francisco, and San Diego. All three markets have continued to face sluggish demand and elevated vacancy, even as a much-needed halt in new project deliveries has taken effect.
At the same time, several smaller life science clusters have shown improving fundamentals in recent quarters, particularly Raleigh-Durham, Denver-Boulder, and DC-Baltimore. While the recovery emerging in these markets is encouraging, a broader sector rebound will likely remain limited until the major core clusters begin to show more meaningful momentum. Stay tuned for additional insights as we continue to monitor how the sector recovery will unfold!
