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Market Report

Boston Office Market Report

4Q 2023

Scale of Deliveries Puts Pressure on Vacancy,
Effects Felt More Acutely Downtown

Considerable pipeline set to deliver amid softening demand. Preferences for smaller floor plans have begun to impact Boston’s office market. More than 2.5 million square feet of office space was returned to the market during the first half of 2023, the highest amount in any six-month span on record, barring recessionary periods. A rapid pace of supply additions has not aided matters, with more than 6.2 million square feet completed during the yearlong period ended in June. The impact of this inventory has mostly been felt in the urban core, where availability advanced 300 basis points during that span. Deliveries are likely to weigh heavily on fundamentals here moving forward. As of September, more than 14.1 million square feet of office space was underway in the CBD alone, exceeding the metrowide count of every other major U.S. market.
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