Boston Office Market Shows Signs of Stabilization, Marcus & Millichap Reports

October 12, 2026 - 04:19

Boston's office market is showing signs of stabilization, with vacancy declining in several submarkets, demand outpacing new supply and investment sales increasing, according to a fourth-quarter report.

The report points to a market that is slowly finding its footing after several years of uncertainty. Vacancy rates fell in a number of submarkets, a shift that suggests tenants are once again committing to space rather than sitting on the sidelines. Demand has also moved ahead of new supply, a balance that could support rents in the months ahead.

Investment activity picked up as well, with sales volume rising compared to earlier in the year. Buyers appear more willing to close deals as pricing becomes clearer and lenders show greater confidence. The report notes that well-located properties with strong fundamentals continue to attract the most interest.

Even with these positive signals, challenges remain. Some older buildings still struggle to compete for tenants who want modern amenities and efficient layouts. Landlords in those properties may need to invest in upgrades or rethink how their space is used.

the fourth-quarter data suggests Boston's office sector is no longer in free fall. Stabilization does not mean a full recovery, but the trends point to a market that is adjusting and, in several areas, improving.