Boston Suburban Office Figures Q3 2021

October 7, 2021

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  • The Greater Boston suburban office market recorded 57,855 sq. ft. of positive absorption in Q3 2021, the first quarter of positive absorption since Q1 2020. The vacancy rate increased by 110 basis points (bps) to 18.6% while availability increased by 50 bps to 22.5%. The sublease rate remained flat at 2.9%, remaining the highest rate since Q3 2012; however, the rate at which sublease space was added in the third quarter has noticeably slowed from the last 18 months. 
  • Leasing velocity and tour activity in the market has noticeably picked up in Q3 as tenants look toward a return to the office in the near future with vaccination rates nearing 70% in Massachusetts. Office lease concessions remain high in the Greater Boston suburban market, as the slowing of demand that began in 2020 has continued to bring about the need for increased free rent and tenant improvement allowances.