OFFICE MARKET OVERVIEW

ERIC SOLEM, Managing Principal | President

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Despite the turmoil in the financial markets in Q2 2022, demand levels for the Boston office market stayed constant. A significant number of leases signed, with over 90%, in Class A buildings and a significant portion of that occurring in brand new construction. Thus, the “flight to quality” movement continued to drive demand as the hybrid workforce model remains in favor for a majority of large companies. This is evidenced by the spread of rental rate between class A and B/C assets of over $20/SF as office buildings that offer the most desirable technology, amenities, and flexible space better support collaboration and meaningful employee connections to draw employees back to the office.