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Greater Boston Office and Industrial Q3 Market Snapshot: Trends Heading into 2024

Posted by Anne on November 29, 2023
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By Mike Ogasapian

As 2023 is wrapping up and we’re getting ready for 2024, we’re keeping an eye on the market with you in mind:

  • With office vacancy up a full 4% across all submarkets, office owners are looking to any and all adaptive re-uses to full space. Class B buildings face an exodus where tenants that were once priced out of Class A options along Route 128 are now relocating to upgrade in location, area amenities, and building quality. This has led to a trend of uses that were traditionally limited to single-story flex options taking space in Class B office buildings.
  • Housing Choice (MBTA Communities Law) is forcing municipalities with a mass transit stop (The T and MBTA Commuter Rail lines) to adopt zoning to allow for multi-family redevelopment for any property within a ½ mile from a transit stop. We are already seeing developers looking at purchasing several sites in those locations, going as far as to close on some sites prior to a formal zoning commitment from the select towns and cities.

  • Is Office Dead? It appears not. Redevelopment, conversion, and a softened market have created a demand from tenants that were once priced out of Class A markets along 128. Flight to quality is the latest buzzword on the street. Amenitized and well-located buildings are reaping the rewards.

  • Class B office buildings face the largest challenge presently. We anticipate an increase in flex, light manufacturing, and lab uses going into these Class B buildings. Those buildings that cannot adapt in that capacity will face the greatest challenge.

  • Based on the flight to quality we are seeing, we anticipate that some Class B office buildings closer to the I-495 belt will become available to be purchased by users.

  • The industrial market appears to be experiencing a “cooling off” where new construction has caused an increase in supply for users in the market over 80,000 SF. Unfortunately, the greatest demand for industrial users right now is in the 20,000-50,000 SF range. That new supply has yet to be positioned to satisfy that size demand. What was normally considered an “infill” size industrial tenant now has the greatest demand with limited options.


  • As we approach 2024 in the Greater Boston office and industrial real estate markets, it’s important to stay informed about the ongoing changes and trends. We encourage you to explore these developments and consider how they may impact your real estate decisions. Whether you’re an investor, developer, or tenant, understanding the market dynamics is essential for making informed choices. If you have any questions or need assistance navigating these trends, please don’t hesitate to reach out. We’re here to help you make the most of the opportunities that await in 2024. #BostonRealEstate #2024Outlook

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