The Boston Commercial Real Estate Market

Shanti Ryle

September 25, 2025

The downtown core of Boston's CRE market

Key Takeaways

Boston’s commercial real estate market remains strong, driven by its innovation-based economy, world-class universities, and diversified industry base.
The industrial sector is stabilizing despite rising vacancies, supported by logistics and food distribution tenants.
Office demand is shifting toward higher-quality, amenity-rich spaces as companies adapt to hybrid work.
Retail fundamentals are solid, with high incomes and limited new supply sustaining competition for space.
Multifamily assets remain a steady investment, buoyed by consistent renter demand and controlled construction levels.

Boston is one of the country’s most storied cities, but it’s also one of its most forward-looking. As a global center for education, healthcare, finance, and technology, Boston offers a rare mix of tradition and innovation that makes it a magnet for businesses and investors alike. Its commercial real estate market reflects this balance - dynamic, competitive, and fueled by a steady demand for space across sectors.

Crexi helps connect brokers, investors, and tenants to this vibrant marketplace by streamlining how assets are marketed, discovered, and closed. From powerful listing tools to market intelligence, Crexi makes it easier to evaluate opportunities and maximize exposure. To date, brokers nationwide have relied on Crexi to close more than $615 billion in commercial property transactions and market assets representing over $7 trillion in value.

In Boston and surrounding communities like Cambridge, Waltham, Newton, and Quincy, Crexi is proud to support one of the nation’s most dynamic real estate regions.

A park walkway along the Boston harbor, with the downtown skyline in the background

The State of Boston Commercial Real Estate

As the capital of Massachusetts and the economic heart of New England, Boston stands out as both a historic city and a modern business hub. Its location along the Atlantic coast and its role as a gateway to the Northeast corridor make it a natural choice for global companies, startups, and investors.

Education and healthcare anchor Boston’s economy, with world-class universities and research hospitals driving constant demand for innovation. Alongside those anchors, sectors like biotech, finance, and technology continue to expand, attracting both talent and capital from across the globe.

Boston’s commercial real estate market reflects this diversity. From downtown’s office towers to Cambridge’s life sciences clusters and mixed-use development in surrounding suburbs, the city has embraced sustainable growth and urban revitalization. This combination of strong fundamentals, innovation, and strategic planning makes Boston a market where investors, businesses, and residents alike see long-term opportunity.

Boston Regional Breakdown

Boston is a major urban center with the feel of a place built for people, not just business. Its blend of historic charm, diverse neighborhoods, and thriving cultural scene creates a lifestyle that consistently ranks among the best in the country. Add in world-class universities, leading hospitals, and strong income levels, and it’s clear why Boston continues to attract new residents while retaining long-time locals. The result is a metro that’s large, influential, and yet remarkably livable - a balance few cities achieve.

Boston is home to over 650,000, with 4.9 million residents in the Boston-Cambridge-Newton, MA-NH metropolitan area.
Most populated cities in the metro area include Boston, Worcester, Providence, Cambridge, and Manchester.
The median age in Boston is 33.7, about 20% lower than the figure in both the larger metro area and the state overall.
About 40% of the population is between 20 and 49.
In the Boston-Cambridge-Newton, MA-NH metro area, per capita income is $60,944, and median household income is $110,697, about 1.4 times the U.S. figure.
A recent U.S. News review ranked Boston as the nation’s top extra-large city for outstanding quality of life, with the metro area beating out cities such as New York City and Washington D.C.

A view of downtown Boston's commercial real estate market from a nearby park

Boston Job Market

Boston’s job market is powered by a rare combination of innovation, education, and global reach. Home to renowned universities and hospitals, the city consistently attracts top talent while fueling growth in sectors like biotech, finance, clean energy, and advanced manufacturing. It’s also a magnet for startups and venture capital, giving Boston a reputation as one of the country’s leading innovation hubs.

Major employers, from hospitals and research institutes to defense contractors and Fortune 500 companies, help provide stability and diversity across the regional economy. With a highly educated workforce and strong infrastructure, Boston continues to balance global competitiveness with local opportunity, making it one of the nation’s most resilient labor markets.

GDP for Boston-Cambridge-Newton is $610.4 billion, up from $489 billion in 2020, according to data from the St. Louis Fed.
The unemployment rate in Boston is 4.2%, about 0.6% lower than the state’s overall figure.
WalletHub ranks Boston as the second-best city for STEM jobs and among the nation’s top 20 cities for job opportunity, based on criteria such as job opportunities, employment growth, and annual median wage.
Leading industries include aerospace and robotics, government and defense, information technologies, financial services, life sciences, advanced manufacturing, and clean energy.
The largest employers in the Boston area include Brigham & Women’s Hospital, Dan Farber Cancer Institute, Massachusetts General Hospital, Raytheon Systems, UMass System Administration Offices, and Boston Children’s Hospital.
Top publicly traded companies in Boston (by revenue) are Thermo Fisher Scientific, The TJX Companies. Inc., General Electric Vernova, and BJ’s Wholesale Club Holdings Inc.
Boston is consistently ranked among the top U.S. cities for startups and venture capital funding, with experts citing its spirit of innovation, exceptional talent pool, and supportive government initiatives.
Among the leading venture capital firms investing in Boston are General Catalyst Partners, Battery Ventures, and Polaris Partners.
The Massachusetts state government promotes economic growth through initiatives like the Life Sciences Act, which injects funding into biotechnology research and development.
The Boston metropolitan area is home to Harvard University, Massachusetts Institute of Technology (MIT), and Boston University, renowned for their academic excellence, research contributions, and significant impact on the local and global educational landscape.
Nearly 56% of residents hold a bachelor’s degree or an advanced degree, about 20% higher than the rate in Massachusetts.
Boston's transportation infrastructure is anchored by Logan International Airport (BOS), which serves as a hub for rail and bus networks, including the MBTA. It is also crisscrossed by major interstates like I-90 (Massachusetts Turnpike) and I-93, and the Port of Boston supports both cargo and passenger services.

The city of Boston with autumn foliage in the foreground

Boston Industrial Market

Boston’s industrial market is going through a transition, with vacancies ticking up as more space hits the market. Even so, core tenants in logistics, food distribution, and manufacturing are keeping activity steady, especially in the region’s busiest submarkets. Renewals have been particularly strong, showing that many companies are sticking with their existing locations while new leasing cools. The result is a market that’s adjusting to new supply but still anchored by industries that are vital to the region’s economy.

Market overview (Cushman & Wakefield Q2 2025 Boston Industrial Report)

Inventory: 175,162,907 SF
Vacancy rate: 10.4%
Absorption: -435,710 SF (YTD)
Completions: 520,178 SF
Under construction: 2,340,732 SF
Key leases by tenant: Destination XL Group, Inc. (674,143 SF), Plantation Products (200,000 SF), New England Sheets (162,000 SF), Bertolino Foods (144,740 SF)
Largest submarkets: 495 South, 495 West, 495 North

Crexi Insights

These are the most recent Boston industrial lease and sales trends from Crexi Insights (as of August 2025):

For Lease (active)

Asking rate/SqFt (median): $23 per year
Median SqFt/listing: 2,500 SF
Days on market: 182
Total listings on Crexi: 33 spaces

For Sale (active)

Median asking price: $3.9 million
Price/SqFt: $283
Median SqFt/listing: 18,600
Days on market: 103
Total listings on Crexi: 5

Sales Comps (past 12 months)

Median sold price: $889,000
Sold price/SqFt: $704
Total sales volume: $118.5 million
Median SqFt sold/transaction: 1,644
Total SqFt sold: 526,100

Find Boston industrial space for rent.

Boston Office Market

The office market in Boston is still working through the ripple effects of hybrid work, with companies rethinking how much space they need and what kind. Vacancies are elevated, but well-located buildings with the right mix of amenities are still drawing steady interest, especially in places like the Financial District and Cambridge.

Many tenants are using this shift as an opportunity to trade up, moving into higher-quality spaces that support collaboration and attract employees back on site. While challenges remain, the market continues to show that demand is there for the right kind of space, backed by the strength of Boston’s diverse economy.

Market overview (Cushman & Wakefield Q2 2025 Boston Office Report)

Inventory: 198,209,749 SF
Vacancy rate: 17.7%
Net absorption: -1,405,755 SF (YTD)
Under construction: 1,159,230 SF
Key leases by tenant: Anduril Industries (162,000 SF), Medtronic (151,564 SF), Rockland Trust Bank (140,000 SF)
Largest submarkets: Central Business District, 495 North, 128 Belt

Crexi Insights

For the latest updates on the office market in Boston, turn to Crexi Insights. Here is the detailed information on the recent sales and leasing trends as of August 2025.

For Lease (active)

Asking rate/SqFt (median): $42 per year
Median SqFt/listing: 807 SF
Days on market: 152
Total listings on Crexi: 217 spaces

For Sale (active)

Median asking price: $1.6 million
Price/SqFt: $401
Days on market: 157
Total listings on Crexi: 14

Sales Comps (past 12 months)

Median sold price: $3.3 million
Sold price/SqFt: $324
Total sales volume: $828.6 million
Median SqFt sold/transaction: 5,342 SF
Days on market (median): 239

Find Boston office space for rent.

Boston Retail Market

Boston’s retail scene is thriving, fueled by strong household incomes, steady job growth, and a constant flow of visitors. Shoppers here spend well above the national average, and that buying power continues to attract both local operators and national brands.

Space, however, is scarce - limited new construction and high pre-leasing mean most projects are already claimed before they open their doors. That scarcity, paired with resilient demand, creates a market where well-located retail space is both valuable and highly competitive. For retailers and investors, Boston offers the rare combination of stability today and growth potential for tomorrow.

Market overview (Cushman & Wakefield U.S. Shopping Center Reports Q2 2025)

Inventory: 71,817,902 SF
Vacancy rate: 3.7%
Net absorption: -115,894 SF (Q2 2025)
Deliveries: 213,126 SF
Under construction: 279,272 SF

Crexi Insights

Boston retail lease and sales trends from Crexi Insights (as of August 2025):

For Lease (active)

Asking rate/SqFt (median): $23 per year
Median SqFt/listing: 2,760 SF
Days on market: 179
Total listings on Crexi: 191 spaces

For Sale (active)

Median asking price: $1.6 million
Price/SqFt: $447
Median SqFt/listing: 3,433 SF
Asking cap rate: 5.6%
Days on market: 135
Total listings on Crexi: 25

Sales Comps (past 12 months)

Median sold price: $1.5 million
Sold price/SqFt: $526
Total sales volume: $423.7 million
Sold cap rate: 7%
Median SqFt sold/transaction: 2,936 SF
Days on market (median): 274

Find Boston retail space for rent.

Dark blue water of Boston Harbor with boats on it, with the city in the background

Boston Multifamily Market

Boston’s multifamily market has remained steady, even as broader economic pressures weigh on demand in other sectors. Vacancy has leveled off after pandemic-era highs, and asking rents continue to trend upward, reflecting strong underlying fundamentals. Construction has slowed, which gives recently delivered projects time to lease up and helps prevent oversupply in the near term.

With limited new development, healthy absorption, and persistent renter demand (especially in mid-tier properties), the market is showing resilience. For investors, the combination of high barriers to entry and consistent demand makes Boston’s multifamily sector a long-term anchor in the region’s CRE landscape.