Boston Metro office occupancy reached significant lows during the fourth quarter of 2020, according to a recent article in Boston Bisnow. Rent prices posted a rare decline as vacancy levels increased and sublease activity spiked. As of December 2020, downtown offices had a daily occupancy rate of 5% or less.
Analysts are expecting another shoe to drop before the office sector recovers. WeWork, Boston’s second-largest commercial real estate tenant, held 1.511 million square feet of office space as of late 2019. Thus far, WeWork has not relinquished any sizable portion of its co-working space. However, other co-working space companies have cast off square footage, and a decline in start-ups could cause further attrition in the co-working sphere.
The life science sector and its demand for lab space has been a bright spot for Boston Metro commercial real estate. Some effort is underway to convert new office building projects to lab space, but this will not be a feasible option for all situations.
Simply put, more office space is likely to become available in the months ahead, which will hold down rent prices. Tenants in search of office space have excellent opportunities to negotiate a lease with favorable terms, while enjoying the widest selection available in years. Our expert Tenant Representation can help you make the most of your opportunities!
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!