Photo by Steve Adams | Banker & Tradesman staff

Office tenants are resuming their search for space in downtown Boston at the highest levels since the onset of the pandemic, according to a new report by CBRE.

Companies are actively in the market for 3.4 million square feet of space, after bottoming out in March at approximately 2.3 million square feet. The increase is attributed to a mix of new requirements and companies that had put a total of 1 million square feet of requirements on hold, a figure that has since shrunk to 580,000 square feet.

In the active demand category, companies have made tentative commitments for 1.1 million square feet, with leases in negotiation but not yet executed, CBRE said.

The pandemic cut in half total office requirements, which totaled 5.3 million square feet at the end of 2019, CBRE said. The widespread rollout of vaccines this spring gave companies the confidence to put return-to-office plans back in action.

“Even as some occupiers plan to continue on with some remote work, most appear to be reaffirming their commitment to the office as a primary place for work,” the CBRE report said.

Investment sales activity in boutique downtown office properties also has shown some recent signs of life, including Brooklyn, New York developer MCRE’s recent acquisitions of 110 Chauncy St. and 11 Avenue de Lafayette for a combined $51 million. The Brooklyn-based developer, which specializes in brick-and-beam building repositionings, plans capital improvements including a new lobby.

On Wednesday, the developers announced that JLL Boston will market 35,000 square feet of available space at 11 Avenue de Lafayette, including leases as small as 4,500 square feet.

JLL Managing Director Bryan Sparkes and Executive Vice President Bobby Jangro head the leasing team.

“As companies start moving back into office space, we see tenants prioritizing health and wellness, flexibility and the idea of the office being a magnet for employees, many of whom have grown accustomed to working from home over the last year,” Sparkes said in a statement.

Over 1M SF of Boston Office Leases in Negotiation

by Steve Adams time to read: 1 min
0