Wave of large renewal activity signals early stages of market stabilization

Significant renewals during the second half of 2024 bolstered leasing activity, creating positive momentum for the coming year. Ropes & Gray made headlines in Q4 with the very early renewal of 413,000 square feet (sf) of space on the top floors of the Prudential Tower trophy building. Similarly, renewals of 335,000 sf for PwC and 76,000 sf for Latham & Watkins also in trophy buildings contributed to the sustained leasing of 2.5 million square feet (msf) during the fourth quarter, following the 3.4 msf of activity executed in Q3. While these quarterly transactions took place in the Boston CBD, the suburbs also saw several large renewals, including those of Systems Technology & Research and Cisco Systems. A few tenants secured new leases elsewhere, with Jones Day becoming the first tenant to commit to South Station Tower, leasing 44,000 sf in anticipation of the new trophy asset's delivery next year. The trend of occupiers recommitting to large footprints in premier CBD spaces reflects smoother integration of hybrid work models, as well as a growing desire for long-term stability and favorable terms among some occupiers.

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