Demand for Boston Metro office space is signaling the start of a commercial real estate recovery, according to an analysis by CBRE. Downtown Boston is leading the way with office space inquiries posting a record high. As of the second quarter of 2021, nearly one-third of Boston’s 3.4 million square feet of available office space is under commitment. Another 580,000 square feet of office space is in negotiation, which could bump absorption rates higher.
The turning point in the Boston Metro commercial real estate market emerged during the first quarter of 2021. Vacancies in the core of Boston decreased by 11.9%. Since then, major tenants from a variety of industries have swept in to obtain coveted Class-A office space.
What about work-from-home? It isn’t going completely away, but it isn’t likely to decimate office space demand from what we are seeing. Certain employers are reducing their office footprint as they embrace remote work and hybrid work models. Yet these modifications in office operations remain something of an experiment, and are not an across-the-board approach to workforce management.
For Boston Metro tenants, this means that the short-lived days of office space bargains may be coming to an end. We strongly recommend obtaining tenant representation to find the best solutions for your needs!
When you are ready to begin, relocate or expand your business, team up with the Jay Nuss Realty Group, LLC! Whether you are thinking of buying, leasing, or investing in Boston Metro commercial real estate, we can help you find the ideal property.
Contact us today for commercial real estate guidance!