Boston’s commercial real estate market saw a decrease in leasing activity during the fourth quarter of 2023, according to the latest report from Cushman & Wakefield. The warehouse, office, and life sciences sectors all experienced a slowdown.
Although there was still healthy activity in the warehouse market, leasing decreased slightly compared to last year. The majority of demand was captured by properties along the 495 Belt. Despite new developments in this sector, leasing rates were lower than previous years which led to a decline in vacancy rates for the first time since mid-2021. However, rental prices continued to rise and reached $15.14 per square foot.
In terms of office space, there was also a decline in leasing activity with Downtown seeing slight decreases while suburban markets showed signs of stabilization with increased vacancy rates. New lease sizes also decreased overall demand for this sector.
The life sciences market experienced its third consecutive quarter with slowed down leasing activity which had an impact on construction starts as well.
This article originally appeared on Connect CRE.
