B
oston's office market is showing signs of stabilization, but leasing conditions remain in favor of tenants, according to Collier's third quarter report. Key takeaways from the report include:

    The vacancy rate appears to be leveling off, and office demand is trending upward.

    Sublease availability is decreasing in Boston, Cambridge, and the suburbs, while investment sales remain scarce.

    Although the total availability rate stands at 23%, a 10-point increase above pre-COVID lows, it has remained unchanged from the previous two quarters. However, the market has absorbed over one million SF of space in the past six months, including large amounts from just-delivered buildings.

    The metro has experienced consecutive quarters of positive absorption for the first time in three years, driven by companies reabsorbing sublease space and a decrease in new vacancies coming to market.

    Leasing conditions still favor tenants, with direct vacancies exceeding 33 million SF. The metro also has approximately 900,000 SF of speculative space underway without announced commitments, which could lead to backfill space in other properties.

    The report notes that reduced white-collar workforces and potential lease roll-downs may hinder a sustained recovery, as nearly 10 million SF of sublease offerings remain available across the metro.