Image courtesy of DiMella Shaffer

A 345,000-square-foot life science development in Lexington is being delayed because of declining industry demand and inflation.

The project by developer North River Co. has been put on pause, and developers are requesting a two-year extension of its special permit from the Lexington Planning Board.

The project includes a 2-story lab building and 502-space parking garage, but has been paused “due to significant increases in construction costs and a slowing demand for space within the life science industry,” Director Benjamin Dulac of North River Co. wrote in a letter to Lexington officials.

Developers expect to resume the project “when the market is right,” the letter states.

A significant glut of lab space is entering the market in Greater Boston as biotech companies cut back on space expansion. The development pipeline totals 21 million square feet, including 5.5 million square feet that has yet to break ground, and companies are offering 1.9 million square feet of life science space for sublease, according to Newmark data.

In Newton, Mark Development delayed its Riverside lab development in December, citing economic headwinds.

And in South Boston, an approved 327,000-square-foot expansion of the 88 Black terminal by The Davis Cos. was delayed because of the lab space glut.

North River Co. acquired the approved development site on Lexington’s Hartwell Avenue in July 2021 for $38.7 million from ASB Capital Management.