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.
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.
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.
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.
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.
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.
Explore different topics like the latest office market pricing trends and analysis of Boston's current office real estate market conditions. Gain a better understanding of Boston’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Boston's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Boston.
The dashboard was delivered through AVANT by Avison Young: leveraging real-time data and analytics to make cities and location-based decisions more transparent and efficient. Learn more about AVANT.