According to recent reports from Avison Young, Savills, and JLL, the Boston office leasing market is showing signs of improvement in the third quarter. Avison Young reported a 31% increase in activity across Greater Boston during this time period. Similarly, Savills described Q3 as the strongest quarter since Q1 of 2022 while JLL noted a decline in vacancy rates for the first time since before the pandemic.
John Dolan, managing director of Avison Young’s Boston office stated that their team and clients are feeling confident about market conditions as they head into 2025. While transactions may still take longer to close compared to pre-pandemic times, there are indications that activity could speed up following upcoming elections.
Some notable highlights from Q3 include Bain Capital’s expansion to 378,000 square feet at 200 Clarendon St., and Vertex Pharmaceuticals’ commitment of over one million square feet at 50 Northern Ave., both located in Boston. According to Bryan Montgomery , research manager at JLL,”Boston has seen more workers returning to offices than any other metro area since July last year with a significant increase of over ten percent.” However,the region is still slightly below national averages for return-to-office rates which suggests potential for further growth in the near future.
The featured image shows an aerial view of one such property -200 Clarendon St.- highlighting its prominent location within downtown Boston.
