22Q1 Boston Office Market Report

Key Takeaways

The Boston metro posted three consecutive quarters of positive net absorption for a grand total of almost 2.9 million square feet.
The metro’s availability rate (15.6%) is at its lowest level in more than a year.
Life science conversion activity is having a positive impact on fundamentals across the metro.

In the city of Boston, the office market recovery lost some momentum in the first quarter of 2022. Total Availabilities ended the quarter at 14.2%, compared to the 2021 year-end 14% level. Despite some backtracking, absorption over past year is better than the average pace of absorption of the five years leading up to the pandemic. With more than four million square feet worth of tenants seeking space in the market, there will be opportunities to fill empty space and keep the recovery moving forward.

Occupancies improved in both Cambridge and the Suburbs during the first quarter of 2022. In the Suburbs, Class A and Class B availabilities both ended the period at 17.5%, marking an improvement from their year-end levels. In Cambridge, with fundamentals superior to those in the Suburbs, the 7.3% availability rate is notably below its long-term historical average.

22Q1 Boston Office Market Report

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Related Experts

Jeffrey Myers

Research Director

Boston

+1 617 330 8148

As Research Director, Jeff Myers leads the research operation of the Boston office of Colliers. 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.

Since joining Colliers in September 2021, he has focused on synthesizing real estate, demographic, and economic variables to support brokers and provide clients with strategic and actionable insights. In addition to tracking and analyzing pertinent trends, Jeff leads the production of quarterly reports highlighting activity in the market.

Prior to joining Colliers, Jeff 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, he and his team managed 9+ million square feet of commercial real estate across 500 acres. Jeff 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.

Before joining Massport, Jeff spent more than 11 years as a consultant and real estate economist at CoStar Portfolio Strategy. While there he developed extensive knowledge of the commercial real estate business as well as strong skills in client engagement and industry analysis. During his tenure with CoStar, Jeff provided strategic advice to institutional real estate investors across multiple sectors and geographies. Jeff also has municipal city planning experience in Indiana and Georgia.

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Kelly Doonan

Research Analyst

Boston

+1 617 330 8062

I joined Colliers' Boston office as a Research Analyst in 2021. In this position, I contribute to the creation of the firm's quarterly Market Viewpoints, as well as the distribution of Week in Review, Colliers' weekly newsletter. I also collaborate across various brokerage and advisory teams on client work and presentations, including labor analytics and market trend analyses.

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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