Newmark Knight Frank Q1 Office Market Report

Following a banner year of net absorption and rent gains, Greater Boston’s office market slowed in early 2020. Historically, first-quarter activity is known to be more measured and, given the market’s late-stage expansion phase, slower growth was certainly a near-term risk. Nagging concerns over macro headwinds have given way to a “black swan” event that will more than likely ignite a global recession. The COVID-19 pandemic and subsequent social distancing measures have led to widespread work-from-home policies and will likely weigh on growth throughout the U.S. office market. Users with longer lead times will likely shelve any major real estate decisions until a clearer picture emerges from this outbreak. While the near-term outlook remains precarious, Greater Boston started 2020 with some of the strongest fundamentals the market has ever seen. A recent moratorium on large-scale construction sites in both Boston and Cambridge could also limit over-supply. Look for successful long-term growth to return once the current challenges subside.

Check out the full report here.

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