Boston Office Market
Driven by occupancy losses in the suburbs, Greater Boston office vacancies surpassed 20.0% for the first time in history. The spread between tenant and landlord expectations has likely never been wider, with the former looking for significant discounts and/or concessions. The “office-to-anything” movement is gaining traction. Landlords are repositioning office space to hotel, residential and amenity suites. Liquidity is slowly returning to Boston, with the sale of 101 Arch St. representing the first tower to change hands in five years.
Download Boston Office Market Report 1Q24Boston Industrial Market
Vacancies increased by 30 basis points to 6.2% during the first quarter of 2024, as new deliveries outpaced net absorption. Due to a slowdown in new speculative construction, the development pipeline now stands at just over 1.1 million SF. Industrial users 50,000 SF and below continue to dominate leasing velocity. As broader market conditions normalize, the industrial asset type continues to outperform many others in the Boston metro.