The Boston office market remains one of the most active in the country when it comes to new development. In fact, nearly 5.9 million square feet of office space was under construction in May according to Yardi Research Data, which is the equivalent of 2.3% of the market’s total stock.

Much of that pipeline is tied to life sciences — a sector long synonymous with office and lab space demand in Boston, but one that’s now facing funding constraints and slower absorption following years of aggressive expansion. Only one new project — the 350,000-square-foot third phase of Innovation Square at 60 Guest St. — has broken ground in the last year.

However, it’s worth noting that, according to Bisnow, landlords and tenants at the publication’s Boston Life Sciences Summit said that local companies were vacating older lab buildings or pandemic-era office-to-lab conversions in favor of newly built, purpose-driven lab space. Now, in a more tenant-friendly market, many of these premium assets — once out of financial reach — are more accessible.

Meanwhile, despite headwinds, Boston’s fundamentals remain somewhat stronger than the national baseline. Specifically, the office vacancy rate stood at 16.9% as of May, which is below the 19.4% national average. At the same time, average asking rents came in at $46.06 per square foot (down 1.4% year-over-year).

Even so, one bright spot for leasing activity has come from the legal sector. According to a separate Bisnow article, law firms signed approximately 800,000 square feet of leases in Boston during the last 12 months. To be precise, more than 70% of leasing activity in 2025 has come from law firm renewals. Notable deals include Ropes & Gray’s 413,000-square-foot renewal and expansion at Prudential Tower, as well as Jones Day’s 41,000-square-foot lease at South Station Tower.

The same article noted that 62 law firms have leases expiring between 2026 and 2028, representing a potential 1.6 million square feet of demand arriving in the near future.

Separately, on the investment side, $633 million in office properties changed hands year-to-date through the end of May. What’s more, the average sale price was $237 per square foot — well above the national average of $194. That total sits slightly below the same period in 2024, when $761 million in office sales closed at an average of $262 per square foot.