U.S. life sciences report

H1 2026

-36%

Leasing activity compared to pre-pandemic averages

U.S. lab/R&D leasing activity remained muted through H1 2026, with volumes still well below pre-pandemic norms. Demand has been concentrated in Boston and the Bay Area, with Boston emerging as the strongest-performing market. Boston recorded approximately 2.3 million square feet of leasing activity in H1 2026, its best six-month period since 2022.
26.9%

Overall lab/R&D availability rate

Despite historically elevated supply levels, U.S. lab/R&D availability has declined for four consecutive quarters, driven primarily by lab buildings being repositioned to office use and obsolete inventory being removed rather than by a significant rebound in demand. 

$47.53

Average NNN rents for lab/R&D space

Lab/R&D rents continue to soften across the U.S., with every major life sciences market recording rent declines over the past three years. The largest corrections have occurred in Seattle (-16.7%) and Philadelphia (-15.4%), reflecting broader pricing adjustments across formerly high-growth markets.

For more information, contact:

Tucker White - US Office Agency Market Intelligence Lead - Avison Young

  • U.S. Office and Life Sciences Lead, Market Intelligence
  • Life Sciences, Office Agency

See how Boston, the Bay Area, San Diego, the Tri-State, Philadelphia, Raleigh-Durham, Seattle, and Washington, D.C./Baltimore are driving the life sciences sector today.

Leasing activity, H1 2026 vs. pre-COVID 6-month averages (2015–2019)

Leasing activity remained relatively subdued across the U.S. lab/R&D market during H1 2026. Boston was the notable exception, with leasing volume exceeding pre-pandemic six-month averages by 37%, while overall U.S. activity remained 36% below historical baseline levels.

Boston and Bay Area drive leasing activity

Over the past 12 months, leasing activity has remained concentrated in the Boston and Bay Area life sciences markets. Boston, in particular, experienced a notable recovery, recording approximately 2.3 million square feet (msf) of leasing volume in H1 2026, its strongest six-month performance since 2022.
 

Available supply decreases

Despite persistently elevated supply levels, lab/R&D availability has declined for four consecutive quarters. While modest improvements in tenant demand have contributed to this trend, the decline in availability has been driven primarily by lab-to-office conversions and obsolete inventory removal.
 

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