Life Sciences Market Downturn & Adaptive Reuse

Sugar Land, TX actively courting life sciences with incentives, leveraging TMC proximity. Boston life sciences shows first positive absorption in 2 years, but lab vacancy still ~30%. Biotech M&A boom ($85B+ H1 2026) but uneven recovery. BioMed Realty hands over $322M Boston lab conversion to lenders. Breakthrough/Tishman Speyer $90M mezzanine for San Diego campus. Harvest Properties buys Palo Alto campus at 44% loss for housing redevelopment. New: CBRE midyear outlook forecasts 40 bps vacancy decline, cautious optimism. Alexandria Real Estate stands to lose nearly $200M on Kips Bay project (NYC) due to legal battle – major signal for NYC life sciences.