BOSTON–VTS released its Monthly Data Insights for the month of May, which shows new requirement velocity for office space in Boston totaled 824,000 square feet, the highest in 14 months and 50 PERCENT above the 2021-2023 monthly average.
This growth was driven by larger tenants (50k+ square feet), and was up 217% month-over-month.
Additional Boston office demand data for May includes:
- 5k square feet of new requirements entered year-to-date in 2024, 21% higher than year-to-date in 2023
- Following a slow April, there was 263k square feet of new FIRE (finance, insurance, and real estate) demand in May, up 166% month-over-month and 38% higher than the monthly average in 2023
- The Professional Services and TAMI (tech, advertising, media, and information) sectors had month-over-month declines (down 8% and 23% respectively), but remained above their 2023 monthly averages
- The volume of Class A proposals with 36+ month terms in Back Bay, Fenway increased 89% during the trailing 6 months vs. the prior 6 months. Over that time frame, starting rents increased 3% and duration increased by 22%
- 5M square feet of tenants were active at the end of May, increasing 8% month-over-month and the highest total since March 2022.
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