State Street Takes 162 KSF Near Boston
This is one of the largest office leases in the state this year.
In one of Massachusetts’ largest office leases of the year, State Street has inked a new commitment at 700 District Ave. in Burlington. The deal involves the renewal of 147,000 square feet, along with a 15,000-square-foot expansion, for a total of 162,000 square feet, also extending the lease through mid-2037.
State Street will thus occupy most of the 12-story office building which totals 199,860 square feet, according to Yardi Matrix information. With offices in Boston, Burlington and Quincy, Mass., the firm pursues a hybrid strategy that has workers come in four days a week, reflecting broader trends shaping the future of the office.
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The building is part of the 1.3 million-square-foot District Burlington. The landlord, National Development, acquired the 1972-vintage property in 2013 for $216 million, the same data provider shows. Last year, the mixed-use campus became subject to a $183.2 million loan issued by AIG, due to mature in 2027.
Common-area amenities include complimentary parking and EV charging stations, a rooftop deck, a 1-mile walking loop, a fitness center and fresh produce through Green City Growers. Also, The District includes an on-site 170-key Marriott Residence Inn. Cushman & Wakefield is the property’s leasing manager.
Boston office market’s mixed signals
The 700 District Ave. lease comes at a time of mixed signals for the Greater Boston office market. So far during the first three quarters of 2025, the market has experienced negative adsorption of 2.7 million square feet, resulting in an 18.4 percent vacancy rate, according to Cushman & Wakefield data.
On the other hand, the market’s overall average asking rent reached $48.60 per square foot in the third quarter, up 3.8 percent over the quarter, with 11 of 19 submarkets posting quarterly rent growth, Cushman & Wakefield reported. Class A space is commanding especially high premiums.
New leasing activity in Boston has amounted to some 5.7 million square feet during the first nine months of the year, a total that has already surpassed 2024’s entire total by more than 90,000 square feet, Cushman & Wakefield noted. Eight transactions of 50,000 square feet or larger closed in the metro during the third quarter, all of which involving Class A assets.
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