Sublease Share of Total Vacant Space is Trending Downward in Boston
Sublease Share of Total Vacant Space is Trending Downward in Boston
- Sublease availability in the Boston market has fallen sharply, from 10.5 MSF at the end of 2024 to 5.8 MSF by early Q2 2025. This decline reflects corporate hesitation toward long-term direct leases due to economic uncertainty, fueling demand for flexible sublease arrangements. Concerns over political instability and global trade tensions further complicate financial outlooks. Larger sublease transactions by Toast, Activision Blizzard, HomeSiteGroup, HarbourVest Partners, and CoStar reinforce the trend across various space requirements.
- Another factor in the decline of available sublease space is a transition toward direct leasing. As pre-pandemic leases begin to expire, landlords are converting the previously-subleased space into new direct deals, further dropping the available vacancy.
- This downward trend in sublease availability is expected to continue, reducing short-term options and restricting access to lower sublease rents.
May 7, 2025
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