Boston 2026 U.S. Real Estate Market Outlook Midyear Review

Executive Summary

Boston's midyear commercial real estate market reflects broad recovery with sector-specific nuance. Downtown Office vacancy has likely peaked as sublease availability hits a 10-quarter low, with legal, financial services, and AI firms driving new-deal demand. Industrial absorption turned positive in Q2, though rent growth remains flat through 2027. Life Sciences faces elevated 28.7% vacancy but shows early demand inflection. Downtown Retail availability holds near historic lows, fueled by experiential and luxury concepts. Multifamily stands out nationally, ranking third in projected rent growth and supported by the court's rejection of statewide rent control.