Boston area office rents fell year over year, ending four consecutive years of growth

In the first quarter of 2021, the overall average asking rent stood at $32.40 per square foot (psf) in the Boston region, reflecting annual (-7.7%) and quarterly (-3.8%) declines. First-quarter submarket rents ranged from $14.10 psf along Route 495 North East and $16.17 psf in Southern New Hampshire, to $64.88 psf in the Financial District and $72.03 psf in Back Bay. Marketwide Class A rents decreased by 6.1% year over year and 3.1% over the quarter, to $40.62 psf. Central Business District (CBD) and suburban rents fell by 1.3% and 3.8%, respectively, in the first quarter of 2021. Over the last year, top rent spikes included Route 495/Route 2 West (+14.4%), Neighborhoods District (+11.3%), Route 495 South (+10%), and Worcester (+9.8%). In contrast, the Route 495 North East (-40.6%), Route 128 West (-22.6%), and Route 128 South (-20.4%) submarkets saw sharp rent declines over the same period.

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