{"id":1004779124,"date":"2026-03-31T05:20:26","date_gmt":"2026-03-31T13:20:26","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004779124"},"modified":"2026-03-31T05:20:28","modified_gmt":"2026-03-31T13:20:28","slug":"boston-office-market-update","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/boston-office-market-update\/","title":{"rendered":"Boston Office Development Surges, Visits Still Lag"},"content":{"rendered":"\n

Boston\u2019s 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<\/a> in 2025.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Largest office pipeline nationwide<\/h2>\n\n\n\n

As of January, Boston office space<\/a> continued to post the largest under-construction development pipeline nationwide, clocking it at more than 4.1 million square feet\u2014about 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.<\/p>\n\n\n

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\"Exterior\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
Last year, Hines completed South Station office tower in Boston.
Image courtesy of DBOX<\/em><\/figcaption><\/figure><\/div>\n\n\n

The market remained in the spotlight when also taking into account projects in planning stages. Boston\u2019s share reached 5.7 percent, almost four times the national average.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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).<\/p>\n\n\n\n

The largest office building to be completed last year was South Station Tower, a 686,000-square-foot high-rise within the city\u2019s downtown. Hines completed the 51-story building using funds from an $870 million construction loan originated by Children\u2019s Investment Fund.<\/p>\n\n\n\n

Sales remain steady, prices below U.S. average<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n