Boston Office Tenants: Subleases Increase as Long-Term Decisions are Delayed

Occupiers in the Boston Downtown, suburban and Cambridge office markets are hesitant to make long-term decisions about their real estate requirements, according to CBRE. Additionally, new subleases have impacted availabilities and vacancies.
Second-quarter leasing volume in Downtown Boston was 771,000 square feet – a decrease from the five-year quarterly average. In contrast, overall leasing activity in Boston’s suburban market finished at 442,593 square feet due to new deals driving activity. Meanwhile Cambridge remained relatively unchanged from Q1 as tech firms reassess how the return to office will manifest for their employees seeking a work-life balance.
Kevin Kennedy SVP at CBRE commented “Boston’s Downtown continues performing better than most other major cities across America; however economic uncertainty combined with an influx of subleases remain concerning for both investors and occupiers as they attempt navigating these new market conditions.”