The Downtown Boston office market recorded the fifth consecutive quarter of negative growth with 72,000 sq. ft. of negative absorption in the first quarter. Despite this, the first quarter saw the least amount of space added to the market since the start of the pandemic along with modest signs of transaction activity. Availability and vacancy decreased 10 basis points (bps) to 18.5% and 11.9% respectively.
The Boston life science market continues to be a bright spot in the current challenging landscape. As momentum behind office to lab conversions strengthened, availability downtown increased for the fourth quarter in a row to 22.3%. Vacancy declined to an all-time low, sitting at 1.1%, and sublease availability remained low at 0.6%. In the Seaport, where inventory is close to 4 million sq. ft., vacancy remains matched at the same 1.1% rate of the overall Boston market.