Boston Office Figures Q3 2021
October 7, 2021
- While a sense of optimism and vibrancy returned to the streets of downtown Boston over the summer months, the arrival of the Delta variant has temporarily paused that enthusiasm as many companies again delayed their return to the office. The city of Boston lifted all COVID-related restrictions on May 29th but reimposed indoor mask mandates on August 20th to combat the latest Covid surge. Despite this, the downtown office market experienced the strongest quarter since the pandemic began, showing signs that a return to normalcy is on the horizon.
The Boston office market recorded the first quarter of growth since the end of 2019 with 364,000 sq. ft. of positive absorption. While big deal transactions remain muted, activity in the sublease market is as strong as it has been since the pandemic began. Overall availability decreased to 18.4% and vacancy declined to 11.1% in the third quarter of 2021.
The amount of sublease space on the market downtown declined significantly in the third quarter to 2.7 million sq. ft. Sublease availability has declined by more than 700,000 sq. ft. since the end of Q1 2021, with the majority happening in the third quarter.