Boston’s premier tenant-focused commercial real estate firm, Cresa, announced today the release of its Q1 Market Insight Reports, which provide a first-hand look at the trends and opportunities in the region’s commercial real estate market. Known for its expert commercial real estate advice and services for industries ranging from higher education to healthcare, Cresa’s reports point to a variety of markets moves that will drive commercial property leasing activity in 2025 and beyond.
The Q1 report reflects the vast in-house expertise of Cresa’s leadership and research teams and provides a roadmap for where the commercial real estate sector is headed in the coming months. Key highlights include the following:
- In a Downtown Boston market still rebalancing, renewals are dominating. It remains a tenant’s market with a vacancy rate near 20% and buildings trading at deep discounts. Put simply, now’s the time for occupiers to negotiate more favorable lease terms.
- Cambridge office space is holding steady—but uncertainty lingers. With over 1M SF of sublease still in play, tenants can push for flexibility and favorable terms. With subleases burning off and inflation top of mind, flexibility is the name of the game for landlords.
- Tempered demand paired with a non-stop flow of new inventory has resulted in an oversupply of big block space in the life sciences market. With vacancy surpassing 30%, lab tenants now have leverage. Despite market turbulence, strong incubator demand signals resilience at this early stage.
- Stalled valuations = opportunity. Suburban landlords are adjusting expectations, and bold tenants are seizing the moment. The door is wide open for strategic relocations.
- Uncertainty is driving short-term renewals in the industrial and flex markets—but in the right submarkets, opportunity is brewing. Tight pockets like 495 North remain competitive, but for tenants, this is the moment to lock in space before rents rise again.
“Growing concerns over tariffs and other economic forces has injected some hesitation into the booming industrial and flex submarkets, but that is likely just a moment in time,” said Adam Subber, Managing Principal, Cresa. “We expect to see continued demand for these properties as the market recalibrates while new incubator formation is creating some long-awaited activity in the space-rich life sciences market. More deals for smaller footprints will likely define multiple market segments going forward as occupiers realize their priorities have shifted in recent years.”
See the reports below for insights into specific markets:
About Cresa
Cresa is the world’s only global commercial real estate advisory firm that exclusively represents
