Leasing activity remains renewal-driven, with select expansion and trophy leasing highlights

Leasing activity in Boston’s Central Business District (CBD) remains largely driven by renewals, with limited net new demand. A key bright spot in Q1 was expansion activity by Klaviyo and RA Capital, renewing and expanding for 250,000 square feet (sf) at 125 Summer Street and 53,000 sf at 200 Berkeley Street, respectively—both examples of growing tenants with net positive space requirements. The largest new lease was FM Global’s 50,000 sf commitment at South Station Tower, marking the trophy asset’s second lease. Total Q1 leasing volume reached 1.0 million square feet (msf), up 0.4 msf year over year, though net new leasing remains limited. As a result, availability has ticked down just slightly and average asking rents remain mostly flat this quarter.

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