Boston Area Office Market Report for Q1 2024

Overview

Boston’s office market is suffering from a post-pandemic slump. Companies are downsizing and demand for office space is shrinking, while a wave of new construction is flooding the market. This imbalance is driving vacancy rates to record highs and pushing rents down.

The slowdown is being felt across all sectors, with tech, finance, and even life sciences companies reducing their office footprints. With ridership on public transportation still far below pre-pandemic levels, it’s clear that many employees are working remotely at least some of the time.

This has led to a surge in sublease space as companies try to offload unused offices. With more supply coming online and demand dropping, vacancy rates are expected to keep climbing in the next two years.

Investors are spooked by the uncertainty and have pulled back from the market. Transaction volume is at its lowest point in over a decade, making it difficult to determine the true value of office buildings.

The future of Boston’s office market is uncertain, but with a potential return of liquidity and a repricing of office space, there could be opportunities for both tenants and landlords who are prepared to navigate this changing landscape.

If you’re a tenant or landlord in Boston’s office market, it’s crucial to stay informed about the latest trends and seek expert advice to navigate this changing landscape. Contact us today for a free consultation and let’s discuss how we can help you achieve your commercial real estate goals.

Information provided by CoStar.com

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