Boston Office Market Report

Leasing activity in central Boston signals market recovery. In 2024, Intown Boston saw over six lease renewals, each exceeding 100,000 square feet, as large tenants maintained their footprints — a marked shift from the one such renewal during 2022-2023. In contrast, new leases of this size were scant last year, contributing to record-high vacancy. Still, less consolidation and declining sublease space are expected to keep metrowide vacancy below 18 percent in 2025. Planned move-ins, such as HarbourVest’s 200,000-square-foot commitment, along with a moderate delivery slate, will also aid vacancy. Suburbs like Waltham and Watertown, where recent deliveries have lifted vacancy close to metro highs, are poised to benefit from this dynamic. Proximity to top universities, transit access and affluent residents should draw tenants here; already, Novo Nordisk and Zoom have move-ins planned. In outlying areas like Worcester and Lawrence, demand from cost-conscious firms should sustain relatively tight conditions, with local vacancy near metro lows at around 15 percent last year, remaining below 2019 levels.