Boston Office Market
Rising occupancy is persisting throughout Boston’s core submarkets, as the availability rate reached 25.4% in the second quarter of 2024. TAMI firms continue to drive new sublease availabilities. Nearly 10.5 million SF is currently available for sublease in Greater Boston. Asking rents declined across asset classes during the quarter, while concessions appear to have reached a peak given current economic conditions. Occupancy and public transit ridership levels have rebounded, which should bode well for the long-term health of the Boston office leasing market.
Download Boston Office Market Report 2Q24
Boston Industrial Market
In the second quarter of 2024, vacancies expanded by 60 basis points to 7.2% as new deliveries outpaced net absorption. New groundbreakings have picked back up since the start of the year, with nearly 1.5 million SF remaining in the development pipeline. While industrial users 50,000 SF and below continue to dominate leasing velocity, a handful of large tenant requirements have returned to the market. Rent growth remained nearly flat over the quarter as asking rents continue to hover near historic highs.
Boston Life Science Market
Layoffs persist in the local life science sector, and employment growth will likely remain subdued throughout much of the next year. The supply-imbalance continues to weigh on laboratory vacancy across Greater Boston, which has increased for an eighth consecutive quarter. While tenant demand remains elevated at roughly 1.9 million SF, several of these requirements are subject to additional funding or are on hold. The higher interest rate environment, challenging market fundamentals, and wider bid-ask spread is limiting capital markets activity.
Download Boston Life Sciences Market Report 2Q24