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BOSTON MARKETFLASH
Demand is returning to the Downtown Boston office market
JUNE 16, 2021
It is no surprise that 2020 was a tough year for office leasing fundamentals across the country, and Boston was no different. With the state of Massachusetts implementing a work-from-home mandate in March of 2020, office occupiers became uncertain of their future office needs. The 5.3 million sq. ft. of active office requirements that were present at year end 2019 shrank to half that total by Q3 2020. Many occupiers who were actively touring the market before the pandemic decided to put their search on hold, until they gained clarity on their future office needs.

Fast forward a year, and the picture appears to be changing. With the successful rollout of vaccines and the relaxing of COVID-restrictions, many occupiers in the city are eyeing the end of the summer as a goal to have employees return to the office. Even as some occupiers plan to continue on with some remote work, most appear to be reaffirming their commitment to the office as a primary place for work.

Since the beginning of the second quarter of 2021, demand has steadily returned to the Boston market. Active demand has rebounded from its low back in March 2021. At the end of the first quarter, there was 2.3 million sq. ft. of active demand, but an additional 1 million sq. ft. that was on-hold. As we approach the mid-point of 2021, there is now 3.4 million sq. ft. of active demand, and 580,000 sq. ft. on-hold, with the number of requirements at an all-time high. Of the active demand, 1.1 million sq. ft. is currently committed (leases out, but not yet executed). Even though many occupiers will reevaluate the size of their needed space, overall demand is expected to increase throughout the summer and fall.
Figure 1: Historical Office Demand
Source: CBRE Research, Q2 2021
Contacts
Suzanne Duca
Director of Research, New England
+1 857 264 4264
suzanne.duca@cbre.com 
Connor Channell
Senior Research Analyst
+1 617 912 5236
connor.channell@cbre.com 
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