Demand for office space in Boston is increasing, with 460 tenants actively seeking space, the highest level since June 2021, according to VTS. These tenants have requirements totaling 6.5 million square feet, an 8% increase from the previous month.  

New tenant requirements in May reached 824,000 square feet, 50% above the monthly average from 2021 to 2023. Growth is driven by small to midsized tenants, especially in the technology, advertising, media, and information sectors (TAMI), which saw a 48% increase month-over-month.  

Financial, insurance, real estate, and legal sectors also showed significant demand increases. Back Bay and Fenway experienced notable activity, with Class-A proposals rising by 89% over the last 36 months. Despite low early-year demand, experts are optimistic about rising leasing activity and reduced vacancy rates this year.