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22Q3 Boston Office Market Report

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Key Takeaways

  • Top-end buildings are benefitting from a continued flight to quality.
  • Metrowide office vacancies increased for the second consecutive quarter, to about 16.3%.
  • Vacancies ticked up in Boston, Cambridge and the Suburbs.
  • More than 1.1 million square feet of sublease space has come to market so far in 2022.

Headwinds to office market growth persisted into the third quarter. High inflation, increasing interest rates, and falling stock prices have dampened the outlook for business investment. Numerous companies have announced layoffs in response to current economic trends, and more are likely to do so in upcoming months. Many firms are also reducing their office footprints to better align with emerging in-office work patterns. These factors contributed to metro Boston’s negative net absorption and vacancies rising to 16.3%.

Counterbalancing trends could offset some of the negative impact on market fundamentals. The number of office-using jobs in the Boston metro is at a record high, and monthly gains in those jobs have persisted. Venture capital/pre-IPO funding into non-biotechnology Massachusetts-based companies remains healthy more than $11 billion in the first nine months of the year and can help support growth. Also, completed office-to-lab conversions can help bolster office market fundamentals in submarkets across the metro.


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22Q3 Boston Office Market Report

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Related Experts

Jeffrey Myers

Research Director

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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

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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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