The metro Boston office market faced challenges in 2023 with slower leasing and uncertain recovery. Net Absorption in the last quarter of 2023 totaled below negative 700,000 square feet, marking the largest annual decline on record, according to data from Newmark’s Q4 Boston Real Estate Market Reports. Overall vacancy and availability increased to 19.3% and 24.5%, respectively, during the fourth quarter. 

Certain submarkets and asset classes outperformed, and yet others still continued their decline, according to the 2023 Year-End Boston Office Report from Hunneman. The Seaport’s class A market performed well, with a vacancy rate below 6%, while the Back Bay saw a nominal increase to 9.1%. Submarkets showed dualities, with improvements in the 495 South & North markets and increased vacancies in the 128 South & West markets.  

Notable leasing included NY Life’s renewal, SciAps’ new deal, and EMD Serano’s Seaport lease.