B
oston's office market saw a significant surge in leasing activity this quarter, with tenants signing 3.4 million square feet of leases, more than doubling the volume from the previous quarter and reaching its highest quarterly level since early 2022. However, despite this increase, office availability hit a record high of 21.3% last year, according to Savills.

    The top two leases were renewals by Vertex Pharmaceuticals, accounting for over 1.1 million square feet, while Bain Capital's lease in the Back Bay was another renewal with an expansion. The only new lease of note was signed by the Massachusetts Division of Capital Asset Management and Maintenance, which took 106,000 square feet in the Financial District.

    A positive sign for landlords is the rise in asking rents, which reached a peak of $49.07 per square foot in the third quarter, up 2.3% from the previous quarter and 8.6% year-over-year. Class A landlords are commanding even higher rents, averaging $56.79 per square foot.

    The report's authors suggest that the fourth quarter could be critical for office vacancies, with a more competitive leasing environment potentially emerging as expirations and deliveries near.