A local developer is looking to scrap plans for a lab project in the Boston suburbs, citing a lack of tenant demand.
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Boston-based Bulfinch Cos. received approval from the Needham Planning Board in 2022 to build a 500K SF life sciences complex on the former Muzi Ford site at 557 Highland Ave.
But the developer is now seeking approval from the board to change its plans to instead build housing, medical offices and a hotel, Banker & Tradesman first reported.
“There haven’t been any corporate headquarters-type tenants in the market of recent that we’ve been able to court,” Bulfinch President Robert Schlager told the Needham Planning Board last week. “There hasn’t been much interest at all. The life science has pretty much dried up pretty much across the entire United States, not just in Massachusetts.”
Bulfinch Senior Vice President Katherine Shoss told Bisnow in March that the firm was evaluating alternative options for the property. It is one of several developers to pivot from life sciences to other uses in the Boston area in recent months.
The market's life sciences vacancy rose to 25% in the first quarter, with less than 4M SF under construction, according to CBRE. The suburban market recorded 400K SF of negative absorption last quarter, with Route 128 West recording 32% vacancy.
In February, Watertown officials acquired a site that had been proposed for labs for $9.2M from Burlington-based Nordblom Co. Watertown officials floated many ideas for the property, including affordable housing and a new senior center.
Also in February, The Davis Cos. proposed building a 315-unit apartment complex on a site in Waltham that was previously approved for a 200K SF life sciences development.
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