Boston Office Market Report

Supply pressure and policy headwinds weigh on performance. Although deliveries in 2026 will hit a five-year low, Boston will still lead all major U.S. metros, accounting for about 10 percent of the national pipeline, despite representing only 4 percent of inventory. Most projects are upscale, lab-oriented offices — a segment already facing muted demand amid a life sciences slowdown and cuts to federal research funding that disproportionately affect Boston’s research ecosystem. These reductions in university research can ripple through downstream employers, pressuring office space demand. As a result, vacancy rates in supply-heavy submarkets, like Cambridge and Medford-Everett-Chelsea, could rise further after last year’s sharp increases. In contrast, Manchester-Nashua, Lowell, and Worcester recorded the largest year-over-year vacancy declines in late 2025, mirroring the national trend of suburban strength expected to carry into 2026.