Boston office market shows uneven recovery with demand for Class A assets

The Boston commercial real estate market is experiencing a bifurcated recovery, characterized by a growing divide between high-performing assets and older office inventory. While overall office vacancies remain higher than pre-pandemic levels, recent data indicates signs of stabilization.

According to CBRE, Downtown Boston vacancy rates declined from 19.1% in Q2 2025 to 18.7% in Q2 2026. During the second quarter of 2026, net absorption reached approximately 804,000 square feet, with leasing activity exceeding 1.1 million square feet.

Despite these improving metrics, demand is increasingly concentrated in trophy and Class A buildings. These best-in-class assets attract tenants through modern amenities, sustainability initiatives, transit accessibility, and superior workplace experiences, while older properties continue to face declining demand and increased competitive pressures.