Boston’s CRE Vacancy Rates Continue to Increase 

During the third quarter, Boston’s commercial real estate market experienced its fourth consecutive period of increasing vacancy rates, according to Colliers’ Q3 2023 Boston Reports on Office, Multifamily and Industrial. It’s noted that the Boston office market is becoming more favorable for tenants due to investors acquiring assets at lower prices and increased direct space availability.  

On the other hand, the multifamily market in Boston remains strong, with healthy vacancy rates and year-over-year rent growth exceeding historical averages. These reports provide valuable insights into market trends, including total availability, market activity, and investment patterns over time. 

Despite these challenges, the industrial sector’s vacancies remained relatively healthy, staying three percentage points below the long-term average. Over the past year, net absorption in the market was generally positive, with the exception of warehouse space. While landlords couldn’t raise rents as aggressively as in previous years, industrial asking rents still grew by approximately 2.5% over the past year.