Boston & New England CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Report: The Greater Boston Office Market Continues to Slip
The greater Boston office market is experiencing a decline as we approach mid-2023, with muted leasing velocity and significant difficulties facing investment sales, according to an office market report from Hunneman Research Department.
The overall market has posted negative absorption of approximately 1,151,894 square feet, resulting in a 15.5% vacancy rate. While some suburban office inventory initially resisted downward pressure, it is now starting to follow the urban trend, with vacancies increasing and effective rents dropping significantly in some cases.
Recent data from the Federal Reserve points to tighter loan standards and weaker demand for commercial real estate loans, which is a significant indicator for construction, investment, and development in the industry. The signs of distress are growing, with defaults on debt and a decline in commercial property prices. However, despite the turmoil in Boston’s office market, there is reason for optimism in its resilience compared to other major metropolitan areas.
