2025 or 2005 Greater Boston suburban offices trading below values recorded almost 20 years ago

In Q4 2024, Greater Boston’s suburban office building trades logged an average PSF value of $124. In the final quarter of 2005, the average recorded value was $136.
Between 2020 and 2023, the post-COVID lab boom drove record-high PSF averages. Office property transactions intended for conversion to life science further inflated these averages, leading to an artificial boost in PSF figures.
As the suburban office market moves through a correction phase, new property owners are evaluating their recent acquisitions with adjusted expectations, underwriting them at discounted rental rates to align with evolving market conditions.
Key transactions in 2024 include 199 & 201 Riverneck Rd (Chelmsford), 200 Innerbelt Rd (Somerville), and 1200 Crown Colony Dr (Quincy), which all traded at over a 40% discount from their previous sale value. Given the steep drop in building pricing, investors have adopted a more aggressive outlook when pursuing new acquisitions.

February 13, 2025

US-MA-BOS Boston

Sale Price Per SF vs. # of Transactions: 2005-2025