Boston’s downtown and suburban office markets, which experienced a recovery during the first half of the year and fared better than most other major cities due to a diverse tenant base, but economic fears and the adoption of remote work strategies affected the market by year-end, according to the CBRE Q4 Office Figures Report.

Leasing activity in the downtown market during Q4 was 756,000 square feet to end the year with a total of 4.8 million square feet. Overall leasing activity in Boston’s suburban market was 727,609 square feet with over half of the total transactions during the quarter coming from new deals and 30% from renewals.

“Although the year cended on a slower note, deal activity during 2022 was a shining light, increasing 10% from 2021 and over 130% from 2020 levels at the height of the global pandemic,” said Kevin Kennedy, SVP of commercial real estate services firm CBRE. “One trend we will continue to see is flight-to-quality, especially in the suburban market which saw 65% of all deals being tenants drawn to Class A office space as employers implemented back-to-office protocols into the new year.”

Boston Downtown Office Figures
Boston Suburban Office Figures