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Boston Office Market Ends 2024 at Record Vacancy
The Greater Boston office market ended 2024 with an overall vacancy rate of 17.0%, representing a record high and a year-over-year increase of 310 basis points, Cushman & Wakefield reported. This was a sharper rise than the 250-bps increase recorded in 2023. The impact was particularly acute for Class A assets, which saw a 370-bps increase in vacancy, compared to 230 bps for Class B.
Renewals dominated transaction activity through 2024, with nearly 4.3 million square feet of renewal deals completed. This represented 46.1% of all transactional activity, a significant increase over 2023’s share of 24.4%. New leasing activity was subdued, though, totaling 5.1 million square feet and falling short of 2023 by 1.2 million square feet.
“The office market’s dynamics reflect a shift towards stability, with renewals leading the way,” said Riley McMullan, senior research manager. “Tenants continue to prioritize highly amenitized assets and prime locations to adapt to changing workplace strategies.”.
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