Boston, from a demand standpoint, has seen a resilient recovery since the pandemic. In Colliers' first quarter market report, net absorption hit 425,000 square feet, quite the turnaround from the negative -720,000 square feet posted in the three months prior.
Now in the past three quarters, net absorption has totaled 2.1 million square feet — the best run seen for office in Boston since 2018, according to Colliers.
"The first quarter was one of Boston's strongest periods of absorption in the post-COVID era," Colliers wrote.
"Driven by a combination of major deals closing and properties being primed for conversion, approximately 586,000 SF of space for lease was removed from the market."
Additionally, tenants chased high-quality space. This includes JPMorgan Chase signing for 250,000 square feet at the South Station Tower,
Bain & Company's 221,000 square feet at 350 Boylston and Weil, Gotshal & Manges 37,000 square feet at the Lyric complex.
From a vacancy standpoint, conditions have also been improving. The rate dropped by 40 basis points year-over-year to 23.7 percent. Additionally, availability is down 70 basis points from its peak during the middle of 2025, now sitting at 23.7 percent.
While the recovery has been strong in the market, availability is still almost seven percentage points above the historical average.
Asking rents per square foot increased by nearly $1 to $45.16.
Deliveries in the market hit 221,000 square feet compared to the 203,000 square feet that was taken off the market a year ago. That came as construction slowed to 529,000 square feet, down from the 1.5 million square feet in the first quarter of 2025.
Going forward, Colliers expects that continued office-to-residential conversions will continue to boost the recovery in Boston. As of March 2026, there are 1.4 million square feet of detailed applications across 29 buildings in the city, with 18 percent of the total breaking the ground.
"The list includes mid-sized assets such as 294 Washington Street, 320 Summer Street and 31 Milk Street, Colliers noted.
"Fundamentals in the B/C segment will benefit from landlords withdrawing listings and pushing tenants into the market."
But still, Colliers warns that even if all of these proposed redevelopments were to hit the market, vacancy among Class B and C assets would remain above historical averages.
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