BOSTON— Greater Boston’s office market is showing signs of recovery in 2025, with several major leases indicating that companies are once again committing to long-term office space.
According to reporting by the Boston Business Journal (BBJ), roughly one-quarter of the region’s office space remains vacant, yet large lease deals have picked up in both Boston and its suburbs.
The largest lease of the year, BBJ reports, is Hasbro’s 264,000-square-foot headquarters move to Boston’s Seaport District from Rhode Island — a highly competitive relocation announced in September that drew attention from both states.
Other top leases include Klaviyo’s 257,000-square-foot renewal and expansion downtown and BNY’s 200,000-square-foot renewal, also in the city’s core business district. In the suburbs, Arbella Insurance signed a 178,000-square-foot lease to move one building over in Quincy, while Anduril, an AI defense technology firm, inked a 163,000-square-foot lease in Waltham, according to BBJ.
The uptick in larger leases — whether new deals or renewals — suggests that tenants are more confident in their post-pandemic space requirements and less likely to downsize, BBJ noted.
At the same time, several major office projects are coming online, adding to the city’s supply of high-end space. South Station Tower has opened with 680,000 square feet of office space, 10 World Trade in the Seaport spans 555,000 square feet, and One Lincoln near South Station recently completed $100 million in upgrades as it works to fill approximately 500,000 square feet vacated when State Street Corp. relocated to One Congress in 2023.
Largest leases: (Source: BBJ/CBRE)
Together, these developments and leases point to an evolving market — one where elevated vacancies coexist with renewed corporate demand for premium, amenity-rich workspaces.
