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Market Report

Boston Office Market Report

2024 Investment Forecast

Record Inventory Expansion Generates Headwinds
for Both Fundamentals and Investment

Ill-timed supply wave compounds longer-term challenges. The sheer weight of this year’s 9-million-square-foot delivery pipeline will translate to notable headwinds for Boston’s office market. As of late 2023, more than 3.1 million square feet delivering this year had yet to secure tenants. During the decade preceding the pandemic, total supply additions averaged 2.8 million square feet annually. Structural shifts in office usage will also challenge long-run demand. Boston was one of five major metros in which the percentage of remote workers increased from June 2022 through October 2023. Approximately 54 percent of employees were physically present late last year, the second-lowest measure among major markets nationwide. Though this bodes ill for current office footprints moving forward, Boston continues to prove attractive to new tenants that will backfill some of this space. Marking this year’s headline move-in, Amazon will occupy a 630,000-square-foot lease at the rapidly-growing Seaport late this year. The Back Bay area is also a prime draw for firms, with the LEGO Group and CarGurus, Inc. taking a combined 359,000 square feet at a Boylston Street development in 2024.

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