Historical market context: Published April 24, 2025. The figures, concessions, and forecasts below reflect the original 2025 outlook. For a decision today, obtain current evidence for the relevant submarket, building type, and lease alternatives. Keep geography, inventory, and metric definitions consistent when comparing reports.

As we move through 2025, Boston’s office market is facing a big moment. While there are a few early signs that things might be improving, challenges like high vacancy, slow leasing activity, and new deliveries to the market are still putting pressure on landlords and businesses alike. There’s hope—but the comeback won’t happen overnight.

Tenants Are Playing It Safe, Landlords Are Sweetening the Deal

Many companies are still being cautious. Instead of moving, they’re sticking with their current space or downsizing. This is especially true in the finance, insurance, real estate, and tech industries.

To attract new tenants, landlords are offering strong incentives like:

  • Significant T.I. allowance for buildouts

  • Longer periods of free rent

  • More flexible lease terms

Landlords with updated buildings—those offering modern spaces, wellness features, and energy efficiency—are seeing more interest from tenants.

Lots of Empty Space, Lower Effective Rents

Vacancy in Boston hit 17.5% at the start of 2025—matching the national average for the first time in years. Across the area, more than 17.75% of space is available, including roughly 3.3 million square feet for sublease.

Even though asking rents look steady on paper:

  • Overall average: $64/SF

  • Class A Buildings: $71.15

  • Class B Buildings: $53.50

…the effective rents tenants are getting are much lower. The delta between the effective rents and asking rents are approaching $10/SF. Landlords are offering big discounts through free rent and improvement packages. Sublease space is going for 25–30% less than direct space.

Suburbs Picking Up Speed

While a majority of downtown Boston submarkets still struggling to get their footing—with office use at about 67% of pre-pandemic levels—suburban markets are seeing more activity.

Here’s what’s driving suburban leasing:

  • Lower rents and high vacancies in the suburbs, specifically in places like Waltham, Burlington, and Newton

  • Free and ample parking, easier commutes for employees, and lower operating costs

Buildings that are ready for move-in and offer flexible layouts are doing best.

Finance, Insurance, Real Estate and Tech Tenants Making Smart Moves

Big tenants aren’t leaving Boston—but they’re thinking carefully about where and how much space they need. Many are moving into nicer buildings with better amenities while reducing overall square footage.

With over 5 million square feet of leases expiring this year, it will be very telling how the market responds.

Here are the factors identified in the April 2025 outlook:

  • More return-to-office requirements, especially in finance and legal industries

  • Companies continuing the “flight to quality”, moving into top-tier buildings

  • April 2025 delivery forecast: New construction, including South Station Tower and 10 World Trade Center expected to be delivered to the market in 2025 with only 50% of the space pre-leased.

  • Investor interest picking up again as prices come down

  • Further Interest rate cuts to help ease financing challenges.

  • Uncertainty over the impact of Tariffs and rising construction costs.  

Final Takeaway: Change Is Coming

This year is full of opportunity—for both landlords and tenants.

Landlords will need to invest capital, in a tough lending environment, into older Class A-/B+ buildings to compete with higher end buildings attracting a lion share of the tenant demand.

Tenants that start the leasing process early will be able to use tenant favorable market conditions to their advantage to lock in lower rates and significant concession packages.

The April 2025 outlook anticipated a recovery and possible future tightening. Reassess those expectations for a current assignment by comparing credible alternatives, total occupancy costs, and the terms of the renewal offer.

Large full-service real estate firms serve both occupiers and property owners across several business lines. A revenue breakdown by service does not tell a tenant whether the firm has a relationship with the landlord across the table. Ask that question directly: Does your firm lease, manage, sell, finance, or advise on this landlord’s properties? How would that relationship affect my assignment?

WRA represents tenants only. We have no landlord listings or landlord clients. Our work is focused on your occupancy costs, lease flexibility, and alternatives in the market.