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Boston Office Leasing Volume Rises Nearly 30% Year-Over-Year
Office leasing activity is on the rise across the Boston region, increasing 29.8% year-over-year, Cushman & Wakefield reported. Conversely, the region’s life sciences market reached a record high vacancy of 32.3% in the first quarter of 2025, while vacancy also continued increasing in the warehouse/distribution sector, although at a much slower pace.
“Despite lingering challenges in the office sector, we are encouraged by the beginnings of a rebound in leasing activity,” said Riley McMullan, senior manager, Boston research at Cushman & Wakefield. “The Financial District and key suburban submarkets continue to show resilience, demonstrating demand for well-located, high-quality office space.”
Notwithstanding the high vacancy rate, the life sciences sector saw its highest quarterly leasing total since Q1 2023, with nearly 834,000 square feet of new deals signed. The majority of this volume stemmed from two large transactions in East Cambridge, pointing to a potential turning point in demand.
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