As the overall availability of office space in Greater Boston now exceeds 25% of the total market, a notable trend has emerged: a decrease in available sublease space and a subsequent rise of direct availability. This shift is driven by two key factors (one obvious and the other not so obvious): 1) Companies are slowing the addition of under-utilized space to the market and 2) many short-term subleases, despite being priced competitively, are expiring without being subleased, due to a lack of demand amid increasing alternative competition from Work From Home arrangements and/or the steady rise of viable co-working options both in Downtown Boston and the Suburbs, reverting to direct availability and impacting landlords. For landlords, especially those relying on tenant income to meet mortgage payments, this creates additional pressure amid interest rate uncertainty. The response? Both Class A and Class B landlords are being compelled to adjust asking rates to attract tenants. Whether you are a Tenant or a Landlord it's a pivotal time for decision-makers to reassess their strategies towards leasing office space. Read more about the shifting commercial real estate market in our latest Perry Perspective 2nd Quarter Greater Boston Market Report which just came out today...
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