After a record-setting third quarter with more than 1.1 million sq. ft. of absorption, the Boston office market saw the pace of activity slow in the fourth quarter, recording 113,000 sq. ft. of positive absorption.
Vacancy continued to decline, dropping 20 basis points to 6.7% while availability increased
to 13.7% a result of new supply being added to the market.
Activity was driven predominately by lease expirations and less by growth driven needs or
out-of-market tenants looking to migrate downtown.
There is currently 5.1 million sq. ft. of new construction underway, with almost 4 million sq. ft. set to be delivered between 2021 and 2023 with another 5 million sq. ft. shovel ready or in the planning stages.