Boston Office Development Surges, Visits Still Lag

Boston’s under-construction pipeline remained in the spotlight through the beginning of the year. With more than 4.1 million square feet under underway as of January, the metro’s pipeline ranked first nationally, according to Yardi Matrix data. The market was also the runner-up for office deliveries in 2025.

However, Boston trailed many peer markets in terms of in-office visits. Compared to January 2019, foot traffic in the metro was down 47.9 percent in January 2026, versus a 38.3 percent nationwide decline from pre-pandemic levels.

The metro leaned on policy changes in 2025 to support downtown office conversions, in an effort to tackle widening vacancies. The city approved a major update to downtown zoning in October and then extended its office-to-residential conversion program in December, steps meant to ease the repositioning of older buildings and reduce underused, lower-tier space over time.

Largest office pipeline nationwide

As of January, Boston office space continued to post the largest under-construction development pipeline nationwide, clocking it at more than 4.1 million square feet—about 1.6 percent of its total inventory. Life science developments accounted for 73.5 percent of the total volume of office space under construction. Manhattan (2.7 million square feet) and Dallas (2.4 million square feet) rounded out the top three metros in the country.

The market remained in the spotlight when also taking into account projects in planning stages. Boston’s share reached 5.7 percent, almost four times the national average.

One of the projects currently underway is Leiden Center II at Innovation Square, a 345,000-square-foot life science development within Raymond L. Flynn Marine Park. Related Beal topped out the building last summer. The property is already fully leased to Vertex Pharmaceuticals, with move-in planned for early 2027.

In terms of office deliveries, Boston ranked second last year. The metro saw 10 properties totaling roughly 3 million square feet come online, trailing only San Francisco (3.3 million square feet).

The largest office building to be completed last year was South Station Tower, a 686,000-square-foot high-rise within the city’s downtown. Hines completed the 51-story building using funds from an $870 million construction loan originated by Children’s Investment Fund.

Sales remain steady, prices below U.S. average

In 2025, Boston ranked sixth nationally in terms of office investment volume. The metro registered $1.6 billion in sales, with assets changing hands for about $184 per square foot on average, below the $192 per square foot national index.

Manhattan ($7.8 billion) ended the year with the largest office investment volume in the U.S. Among gateway metros, Washington, D.C. ($3.8 billion) and Los Angeles ($2.9 billion) fared better than Boston, while Seattle ($779 million) and Miami ($771 million) lagged behind.

In the largest single-asset office transaction of last year in Boston, Synergy Investments acquired 99 High Street for $227 million. Nuveen Real Estate sold the 731,204-square-foot building for about $310 per square foot.

Still, not every 2025 transaction reflected the same strength. In the first quarter of the year, an affiliate of the merchant bank BDT & MSD Partner and DivcoWest acquired a 1.1 million-square-foot building at a foreclosure action. The duo paid $400 million for the 36-story One Lincoln office tower within the city’s downtown. The asset traded before in 2006 for $889 million.

Biotech firms expand Boston presence, vacancy drops

Boston’s office vacancy rate as of January clocked in at 15 percent, well below the 18.2 percent national threshold. Additionally, the metro’s figure dropped 230 basis points year-over-year.

The metro ranked fifth among top U.S. markets for the smallest share of available space. Manhattan (13.1 percent) had the lowest vacancy rate nationally, followed by Miami (14 percent), while Seattle (27.1 percent) was at the opposite pole.

Leasing momentum continued strong at the beginning of this year, as life sciences companies looked to further expand. In January, Stoke Therapeutics signed a 98,500-square-foot headquarter lease at 245 Fifth Ave., in Waltham, Mass. The company will expand from its current 36,800-square-foot space. Anchor Line Partners and Northwood Investors own the 262,000-square-foot building.

Additionally, biopharma company Roche tripled its space at One Milestone in the Innovation Center at the Harvard Enterprise Research Campus in Boston. The firm agreed to lease 100,000 square feet at the 520,000-square-foot building starting mid-2026.

The metro’s average asking rate during the same month was $45.87. While still well above the $32.55 national average, the figure was down 2.6 percent year-over-year.

Coworking share matches national average

Boston’s coworking footprint topped 6 million square feet across 263 locations at the end of January, according to CoworkingCafe. Flexible workspace represented 2.2 percent of the metro’s total office inventory, matching the national average. Manhattan led the U.S. with 12.5 million square feet.

When comparing a market’s share of coworking space to its total office stock, Miami ranked first at 4.1 percent. Washington, D.C (1.9 percent) had the least space out of gateway markets.

Regus remained the largest flex office provider in Boston, with 752,405 square feet across 39 locations. It was followed by CIC (472,207 square feet) and WeWork (448,716 square feet), while Industrious ranked fourth with 279,788 square feet.