Leasing activity further weakens at the start of 2023

Boston office market leasing activity of just 1.9 million square feet (msf) in Q1 2023 fell short of expectations for what has typically been the strongest leasing quarter of the year historically. This quarter’s volume totaled under 2.8 msf for Q1 for the first time since 2017 and was down 25.5% from last quarter and 43.9% from a year ago, respectively. With only two leases greater than 50,000 square feet (sf) signed, smaller deals contributed partly to the weakened activity as an uncertain economy, mounting layoffs in the tech sector, and hybrid workplace strategies have caused more companies to reduce their real estate footprints and slow their decision making at this time.

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