Boston Office Market
Following a historic low in the first half of the year, a total of 2.4 million SF has been leased this quarter. Compared to the 2.7 million SF committed during the first two quarters of the year. Landlords are increasingly examining other development opportunities in Greater Boston, highlighted by local governing initiatives and other redevelopment opportunities.As asking rents across Boston’s core submarkets stabilize, tenants are increasingly seeking spaces that provide value and flexibility. Occupancy and public transit ridership levels have continued to near pre-pandemic levels, signaling a positive trend for Boston’s return-to-office initiatives
Download Boston Office Market Report 3Q24
Boston Industrial Market
In the second quarter of 2024, vacancies expanded by 60 basis points to 7.2% as new deliveries outpaced net absorption. New groundbreakings have picked back up since the start of the year, with nearly 1.5 million SF remaining in the development pipeline. While industrial users 50,000 SF and below continue to dominate leasing velocity, a handful of large tenant requirements have returned to the market. Rent growth remained nearly flat over the quarter as asking rents continue to hover near historic highs.
Boston Life Science Market
Layoffs persist in the local life science sector, and employment growth will likely remain subdued throughout much of the next year. The supply-imbalance continues to weigh on laboratory vacancy across Greater Boston, which has increased for an eighth consecutive quarter. While tenant demand remains elevated at roughly 1.9 million SF, several of these requirements are subject to additional funding or are on hold. The higher interest rate environment, challenging market fundamentals, and wider bid-ask spread is limiting capital markets activity.
Download Boston Life Sciences Market Report 2Q24