Downtown Boston Office Figures Q3 2026

Downtown Boston’s office market continued to show signs of stabilization in Q3 2026, with vacancy declining to 18.5% and the market posting positive net absorption of 62,741 sq. ft. Leasing activity strengthened quarter-over-quarter, reaching 1.27 million sq. ft., driven by a resurgence of new Class A leasing that accounted for nearly 80% of all activity. Tenant demand remained steady at 4.3 million sq. ft., while the Central Business District led leasing volume, underscoring the ongoing flight to quality among occupiers.

While fundamentals improved, market conditions remain mixed. Average asking rents declined to $66.12 per sq. ft. and absorption trailed year-ago levels, with continued softness concentrated in the Seaport. At the same time, Boston’s development pipeline has effectively paused, with no projects currently under construction following major deliveries earlier this year. Investment activity, however, showed renewed momentum as several high-profile Class A office sales highlighted growing investor confidence in well-located, institutional-quality assets across the urban core.