Market ConditionsLate 2024/early 2025 vacancies, particularly in Cambridge and Mission Bay, suggest that ARE may face more headwinds before a sustained recovery.
Real Estate PricingPoor real estate asset pricing remains an overhang, with capital markets less available for Biotech firms.
Supply HeadwindsSupply/demand imbalance remains a concern for the asset class, which limits the growth outlook through '26 due to occupancy headwinds, narrowing re-leasing spreads, and minimal accretion from development.