The Boston office market has recently experienced a surge in availability, reaching a record-high rate of 20.2%, according to Savills’ Q2 office market report. In the first half of 2024, leasing activity totaled 3.3 million square feet (msf), just below last year’s figure of 3.7 msf for the same period. This decrease can be attributed to a softer second quarter with an annual decline of 4%.
The report also notes that overall leasing activity at mid-year saw a slight decline compared to the previous year, with an increase of only 220 basis points. This is partly due to new direct office space being added at10 World Trade Center Avenue in January 2025 and an influx of sublease space.
Despite these trends, average asking rents continue to rise in Boston’s office market.
At the end
of Q2,
overall asking rents reached $47.99 per square foot (psf), showing a significant increase from last year by upping it by around $56 psf or more than five percent as Class A rents increased by over five percent ($56 psf).
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