The commercial real estate market in Greater Boston saw a decrease in leasing activity across the warehouse, office, and life sciences sectors during the fourth quarter of 2023, according to Cushman & Wakefield’s latest report. While warehouse market activity remained strong, there was a slight decline compared to the previous year. The 495 Belt area saw the most demand for warehouses. Despite new developments, leasing in these spaces decreased which led to a drop in vacancy rates -the first quarterly decline since mid-2021. However, rental rates continued to rise and reached $15.14 per square foot.
In terms of office space leases, there was also a decrease overall with Downtown seeing some stabilization while suburban markets experienced an increase in vacancies suggesting stability as well. The average size of new leases also decreased which impacted overall demand for office space.
Similarly,the life sciences sector experienced its third consecutive quarter with slower leasing activity mainly affecting construction starts.
This article discusses how Boston’s commercial real estate market has slowed down for 2023 without mentioning any specific organizations or companies involved.
