Photo by Aerial Boston | Courtesy of The Bulfinch Companies

The sole tenant of a West Cambridge office building will downsize its headquarters by 39 percent after renegotiating its lease with landlords Healthpeak Properties and The Bulfinch Companies.

Forrester Research formerly occupied 192,405 square feet on six floors of Building 200 at Cambridge Discovery Park.

Forrester terminated its lease for the first through third floors, effective Dec. 31. It signed a new 13.5-year lease for 118,286 square feet on the fourth through sixth floors, according to an SEC filing.

Beginning in March 2027, Forrester Research will pay annual rent of $3.5 million, or $29.50 per square foot, with rent rising annually to $40.83 per square foot in 2038.

CoStar News first reported the transaction, and quoted a Forrester Research spokesperson as saying the decision reflected its hybrid work model.

Forrester Research relocated from 400 Technology Square to the 60 Acorn Drive building in 2011. In February, Forrester Research reported 2024 revenues of $432.5 million, but provided guidance for a 4 percent to 8 percent decline in 2025 revenues.

The company has approximately 1,600 employees worldwide, and also leases office space in London, New Dehli, Singapore, Sydney, Australia, New York City and Norwalk, Connecticut.

Cambridge’s 12.5 million square-foot office market had a 24.4 percent availability rate and 20.9 percent direct vacancy rate as of March 31, according to CBRE.

Denver, Colorado-based developer Healthpeak joined the ownership of the four-building Cambridge Discovery Park campus in a 2020 recapitalization.

The life science REIT is moving ahead with development plans for 40 acres of properties that it acquired in recent years off Concord Avenue in West Cambridge. Last week, Healthpeak announced that Houston-based Hines will develop the residential portion of its 5 million square-foot “Cambridge Point” campus, beginning with a building projected to break ground in 2027.