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21Q4 Boston Office Market Report

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Takeaways:

  • Occupancies took another step forward in the fourth quarter.
  • Leasing in new properties, especially build-to-suits, is propping up net absorption.
  • Lab, cGMP manufacturing, flex, and warehouse are all replacing outdated office stock.
  • Office construction remains limited, but new space is winning out.

The Hub’s office market has posted two consecutive quarters of fundamental improvements. In Boston, vacancies ended the year at 14.1%, 1.6 percentage points better than in midyear 2021. The vacancy recovery has also emerged in Cambridge and in the Suburbs. In fact, Cambridge’s 10.2% availability rate is in line with its long-term historical average while vacancies in the Suburbs (18.7%) shrank by 40 basis points in the fourth quarter.

Demand gains have been supported by leasing from companies across a range of industries, many benefitting from record levels of venture capital investment. Absorption has also been boosted by tenants occupying space in recently completed properties such as MassMutual’s new Seaport digs, the Hub on Causeway, and 455 Grand Union Boulevard in Assembly Row. Smooth sailing is unlikely, but the Boston Metro is positioned to continue its recovery into 2022.


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21Q4 Boston Office Market Report

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Jeffrey Myers

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A 20-year industry veteran, Jeff brings an extensive commercial real estate background that includes expertise in city planning, market research, landlord representation and more.

Myers most recently held the position of Deputy Director of Portfolio & Asset Management at Massport, the port authority in the Commonwealth of Massachusetts. During his time with the organization, Myers and his team managed 9+ million square feet of commercial real estate across 500 acres. Myers was heavily involved in lease negotiations, leasing strategies, tenant relations and market research to aid stakeholders by providing critical information needed for their decision-making processes.

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I assist in managing and upkeeping Colliers' Boston proprietary research database, which contains data on over 360 million square feet of commercial space in approximately 4,000 buildings in the Greater Boston area and the insights it delivers. I work with the rest of the research team to provide reliable data that proves critical when making well-informed market decisions.

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