Worst Boston Office Net Absorption Year in Over Two Decades 

The Boston metro’s office market experienced significant weakening in 2023, with negative net absorption totaling about 6.4 million square feet – more than twice the losses of 2022 – in the worst year here in more than two decades, according to Colliers’ Q4 2023 Boston Office Market report. 

Total availability rose by over four percentage points in 2023, reaching 21.7%, a level higher than the peaks during the Dot-Com Bust, Great Financial Crisis, and COVID recessions. Despite the market weakness, landlords have opted for substantial concession packages rather than reducing asking rents.  

While it is currently a tenant’s market, there is some positive news for landlords, including the fact that office-using job growth, driven by financial activities and professional services, continues to outpace the national average. Additionally, more companies are increasing the number of days employees must work in the office, which could help mitigate space givebacks in the near term. The risk of speculative office projects breaking ground is limited.