Boston Occupiers Settling Only for the Best
November 8, 2022
- A pandemic-accelerated “flight to quality” among office occupiers has rewarded the owners of Boston’s best buildings with healthy levels of leasing and steady positive absorption.
- Leasing in Class A and A+ buildings totals 3.37 million sq. ft. thus far in 2022, already exceeding the five-year annual average set before the pandemic (2015-2019).
- Resilient leasing in Boston’s top office properties helped the Class A absorption rate return to positive territory in late 2021, even as Class B/C space continued to struggle with negative absorption.
- Boston’s Class A properties, buoyed by an active leasing market, raised their asking rents through the pandemic era.
- As the pandemic subsides and companies put into action a variety of hybrid work options, Class A/A+ properties are poised to rebound quickly, supported by demand on the part of occupiers and investors for office space that is modern, tenant-friendly, and sustainable.