**Boston Office Leasing Volume Rises Nearly 30% Year-Over-Year**
Office leasing activity across the Boston region has seen a notable uptick, increasing by 29.8% year-over-year, according to a recent report from Cushman & Wakefield. Despite this positive trend, other sectors of the commercial real estate market are facing challenges.
The region’s life sciences market experienced a significant rise in vacancy, reaching a record high of 32.3% in the first quarter of 2025. Similarly, the warehouse and distribution sector also continued to see vacancy increases, though at a more moderate pace.
“Despite lingering challenges in the office sector, we are encouraged by the beginnings of a rebound in leasing activity,” said Riley McMullan, Senior Manager of Boston Research at Cushman & Wakefield. “The Financial District and key suburban submarkets continue to show resilience, demonstrating demand for well-located, high-quality office space.”
Interestingly, the life sciences sector, despite the high vacancy rate, recorded its strongest quarter for leasing since the first quarter of 2023. Nearly 834,000 square feet of new deals were signed, largely driven by two substantial transactions in East Cambridge. These deals may signal a shift in momentum for the life sciences market going forward.
