Researchers See Signs of Impending Rebound in Boston Office Market

After five consecutive quarters of dwindling office occupancy, the Boston’s office market has finally broken into positive absorption, according to the REAL Insights Greater Boston Office Market Overview for the third quarter.

The report, presented by the Hunneman Research Department, notes that 45,000 square feet in net absorption; a strong performance from the suburbs; and an active sublease market have allowed for the office market to begin its rebound.

Most notably, Boston is now benefiting from companies absorbing a significant portion of vacant sublease space through new leases and sublessors retracting their space from the market in effort to return to the office. However, the total vacancy rate remains static compared to last quarter, sitting at 13.3%.

The study authors also find that a significant uptick in leasing activity is  a suitable indicator path to recovery. Large blocks of space are now being leased again and new developments are seeing increased interest from the market.