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Boston & New England  + Boston  + Office  | 
The Green Street Commercial Property Price Index decreased by 0.8% in June from the previous month, with "sizable bid-ask spreads" a major factor

Worst Boston Office Net Absorption Year in Over Two Decades 

The Boston metro’s office market experienced significant weakening in 2023, with negative net absorption totaling about 6.4 million square feet – more than twice the losses of 2022 – in the worst year here in more than two decades, according to Colliers’ Q4 2023 Boston Office Market report

Total availability rose by over four percentage points in 2023, reaching 21.7%, a level higher than the peaks during the Dot-Com Bust, Great Financial Crisis, and COVID recessions. Despite the market weakness, landlords have opted for substantial concession packages rather than reducing asking rents.  

While it is currently a tenant’s market, there is some positive news for landlords, including the fact that office-using job growth, driven by financial activities and professional services, continues to outpace the national average. Additionally, more companies are increasing the number of days employees must work in the office, which could help mitigate space givebacks in the near term. The risk of speculative office projects breaking ground is limited. 

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About Emily Fu

Emily Fu is Content Director of Connect Commercial Real Estate, where she covers the east coast markets, including New York, Boston & New England, and DC & Mid-Atlantic markets. She produces daily news stories as well as longer-form content, ranging from Q&As to thought-leadership pieces. She also writes feature stories for Connect Money. With previous stints at Reuters, Seeking Alpha, and Commercial Observer, Emily has covered the finance side of the commercial real estate industry, technology, media, telecom (TMT), and fashion. She attended the Columbia Graduate School of Journalism and currently resides in Manhattan.

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