Third quarter leasing activity spikes up after a slow first half of the year

Third quarter Boston CBD office leasing activity bounced back after one of the slowest leasing quarters it has seen in the last 10 years. Leasing activity was 1.1 million square feet (msf) in Q3 2023, up from 0.5 msf in the prior quarter, but down 9.8% from 1.2 msf reported last year. The uptick in leasing activity is a reversal of the downward trend the Boston CBD office market has seen in the last three quarters. Three of the most notable leases during Q3 were the MFS renewal at 111 Huntington Avenue for 313,000 square feet (sf), LEGO's new HQ relocation from Connecticut to Boston at 1001 Boylston Street for 134,000 sf and the Toast sublease from GoTo (formerly LogMeln) for 102,000 sf at 333 Summer Street. Also worth noting is the newly completed One Congress in the Financial District, which delivered 100% leased this quarter. State Street and InterSytems are this property's two biggest tenants, which together occupy 90.4% of the 1.0 million square foot building.

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