OFFICE MARKET OVERVIEW

ERIC SOLEM, Managing Principal | President

Signs of volatility continue with another 1 million SF of sublease coming on the market in Boston’s CBD pushing available sublease space over 3.7 million. Meanwhile, big block tenants such as McKinsey & Company preleased 78K SF new construction at 115 Federal; HarbourVest agreed to lease over 205K SF vacated by State Street at One Lincoln; Eaton Vance finalized 280K SF at One PO Square; AstraZeneca agreed to lease 570K SF at 290 Binney; and Japanese pharma giant Takeda announced 600K SF at 585 Kendall in Cambridge. Vacancy Rate continues to hover just below 10% in the Boston office market with new supply coming on the market and direct rents holding but with downward pressure.