BOSTON-Greater Boston’s office sales volume surged in the fourth quarter of 2024, hitting $708 million, the highest since Q1 of 2022, the Boston office of Avison Young reported.
“Falling valuations have spurred increased transaction activity, reflecting growing confidence among opportunistic investors and users eager to acquire discounted assets,” the report said.
The report also said that asking rents at the trophy and class A space has remained steady throughout 2024, as submarkets with a high concentration of these assets proved to post the highest rates.
“As of year end, East Cambridge posted the highest asking rent, followed by the Bak Bay,” the report said, putting the year-end asking rent at $52.10 PSF. “Given the Back Bay strong class A market, pricing is expected to rise in the upcoming quarters.”
Avison Young said that renewal activity saw a significant year-over-year increase, while both new/relocations along with expansion deals declined in comparison to 2023.
The report said that renewals by Bain Capital, PwC and Ropes & Gray continued over one million square feet of strictly renewal activity throughout 2024.
