Boston office market insights
Q3 2022: A reaffirmed flight to quality trend continues to gain momentum in the class A market, putting upward pressure on rental rates as occupiers must reform their workplace strategy taking construction variables into account.
Inventory
Driven by Boston’s new office towers, approximately 9.7 msf of space is under construction, 4 msf of which is located in Boston’s CBD across four new towers.
Net Absorption
Q3 Absorption in Greater Boston sits at -2.3M sf in Q3 of 2022, a product of more sublease space injected into the market as occupiers continue to list or contract their space, as they attempt to finalize their workplace strategy.
Direct Asking Rent
Landlords continue to raise asking rents in order compensate for increasing construction costs as the market continues to prove competitive through occupiers requiring newer, high-quality space and amenities in the Class A market. In the Class B market, landlords are holding firm on face rents by offering more flexibility with their concession packages.
Availabilities
The amount of available Office space in Greater Boston has increased by over 10% in the past 12 months as more sublease options are offered due to decision-making delays in the workplace.
Vacancy Rates
Greater Boston vacancy increases by 0.9% quarter-over-quarter to 12.7% in Q3 2022 as office occupiers continue to embrace the hybrid-work model.
Investment Sales
Greater Boston Investment activity reached record lows as lab conversion slows, return-to-office plans are reformed, and rates continue to climb, showing a decline in investment volume since the last quarter.
Your source for the latest Boston office market reports
Get in-depth office market reports and insights from commercial real estate experts in the Greater Boston area. Avison Young advisors look at Boston commercial real estate activities and the latest Boston statistics to provide you expert market research on Boston's office properties.
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