Q2 2023 Boston Office Market Report

A series of increases in the Fed rate, including three 75 bps increases in 2022, has bumped the range to 5.25 percent to 5.5 percent, the highest level in 22 years. More increases could come in the continued fight against inflation. Although inflation is cooling, a multi-year recovery is likely ahead as the U.S.remains in a high interest rate environment. As loan maturities approach, landlords are feeling the pressure to map their long-term strategies and areincreasing concessions to maintain rent levels for their balance sheets. Expect vacancies to creep higher as leases on the sublease market begin to expire. Prospective tenants should see favorable terms in the year ahead. 

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