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Boston Office Absorption Marks Largest Annual Decline in Q4 

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. 

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About Emily Fu

Emily Fu is Content Director of Connect Commercial Real Estate, where she covers the east coast markets, including New York, Boston & New England, and DC & Mid-Atlantic markets. She produces daily news stories as well as longer-form content, ranging from Q&As to thought-leadership pieces. She also writes feature stories for Connect Money. With previous stints at Reuters, Seeking Alpha, and Commercial Observer, Emily has covered the finance side of the commercial real estate industry, technology, media, telecom (TMT), and fashion. She attended the Columbia Graduate School of Journalism and currently resides in Manhattan.

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