Boston–Boston’s office market showed signs of resilience and renewed momentum in the first half of 2025, according to a new report released by JLL.
The report highlights encouraging leasing activity, declining vacancy, and rising pre-leasing rates — signaling growing confidence in both city and suburban commercial real estate sectors.
Vacancy Declines, Net Gains on the Rise
One of the most significant takeaways from the report is the decline in Boston’s overall office vacancy rate to 21.2%, buoyed by nearly 500,000 square feet of net occupancy gains over the past year. This marks a notable turnaround in market sentiment after several sluggish quarters.
Large-Block Leasing Holds Steady
Leasing of large office blocks remained active across the Greater Boston area. Notable transactions included Anduril Industries’ 162,000-square-foot relocation in Waltham and the Museum of Fine Arts’ 102,000-square-foot renewal at One Beacon in downtown Boston. These deals reflect sustained demand for quality space, even amid a backdrop of evolving work models and space utilization.
Suburban Market Activity Picks Up
Suburban leasing activity also accelerated, driven in part by the return of converted life science spaces to traditional office use. Despite the additional inventory, average suburban office rents increased by 2.5% quarter-over-quarter, supported by the high quality and location of many of these listings.
New Developments See Strong Pre-Leasing
Meanwhile, pre-leasing activity for office developments currently under construction has reached 54.1%, underscoring long-term tenant confidence in well-located, new-build projects. This trend is particularly encouraging for developers betting on flight-to-quality demand and modern workplace amenities.
Outlook: Optimism with Caution
As the market enters the second half of 2025, JLL analysts suggest that Boston is poised for continued stabilization, particularly in prime locations. However, availability trends, tenant behavior, and macroeconomic headwinds will remain key variables to watch.
