Boston Office Market
Following a historic low in the first half of the year, a total of 2.4 million SF has been leased this quarter. Compared to the 2.7 million SF committed during the first two quarters of the year. Landlords are increasingly examining other development opportunities in Greater Boston, highlighted by local governing initiatives and other redevelopment opportunities.As asking rents across Boston’s core submarkets stabilize, tenants are increasingly seeking spaces that provide value and flexibility. Occupancy and public transit ridership levels have continued to near pre-pandemic levels, signaling a positive trend for Boston’s return-to-office initiatives
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Boston Industrial Market
Industrial vacancy rates increased for a ninth consecutive quarter, reaching 7.6% in the third quarter of 2024 as new speculative deliveries weigh on market fundamentals. Cargo volumes dipped at the Conley Terminal in Boston during third quarter of 2024 as supply chain risk continues to impact industrial port markets. Three new projects delivered during the third quarter of 2024, totaling 313,950 SF in two separate industrial submarkets. Rent growth remained nearly flat on a quarter-over-quarter basis as asking rents continue to hover near historic highs.
Download Boston Industrial Market Report 3Q24Boston Life Science Market
Layoffs persist in the local life science sector and employment growth will likely remain subdued throughout much of the next year. The supply-imbalance continues to weigh on laboratory vacancy across Greater Boston, which has increased for a ninth consecutive quarter. While tenant demand remains elevated at roughly 1.9 million SF, several of these requirements are subject to additional funding or are on hold. Recent interest rate cuts bode well for demand drivers, but have yet to improve investor interest in laboratory assets.