The demand for office space in Boston is on the rise, according to VTS. In fact, there are currently 460 active tenants searching for space, marking the highest level since June of 2021. These tenants have a combined requirement of 6.5 million square feet, which is an increase of 8% from the previous month.
In May alone, new tenant requirements reached a staggering total of 824,000 square feet – a significant increase compared to the monthly average between now and 2023. This growth can be attributed to small and medium-sized companies in industries such as technology (TAMI), advertising & media and information sectors with a notable month-over-month surge of up to48%.
Furthermore,the financial sector along with insurance real estate and legal services also experienced considerable increases in demand.Boston’s Back Bayand Fenway areas saw particularly high activity levels with Class-A proposals rising by an impressive89% overthe past three years.Despite lower early-year demands,the outlook remains positive as experts anticipate increased leasing activity leadingto reduced vacancy rates this year.
This article was originally published on Connect CRE.
