Boston 2025 U.S. Real Estate Market Outlook Midyear Review

Market Overview

CBRE reports that speculative new office development in Boston will halt following the delivery of 1.7 million square feet in early 2026, lifting the competitiveness of top-tier space. Vacancy in trophy and premium locations is likely to tighten, even as overall downtown vacancy may peak in 2026. Demand is being led by legal, financial services, insurance, and real estate tenants—who together account for about 65 percent of leasing—and lease renewals dominate activity, with renewals representing approximately 64 percent of current leasing. Coworking spaces are nearing capacity, hinting at potential spillover demand from small and mid-size firms.

About CBRE

CBRE is the world’s largest commercial real estate services and investment firm, operating in more than 100 countries. The firm offers a full spectrum of services including leasing, capital markets, valuation, property management, and advisory. CBRE’s market outlooks leverage deep data analytics and local expertise to provide professionals with clarity on evolving trends and strategic market positioning.