Top 5 Office Construction Submarkets in Boston

Despite facing economic challenges and a slow recovery post-pandemic, Boston leads the nation in office space construction, with nearly 13.9 million square feet under development as of April. This represents 5.6% of the market's existing stock, significantly higher than the 1.2% national average, though it reflects an 800 basis-point decline from the previous year.

National Office Space Development Decline

Nationally, the construction of office space has significantly decreased. As of April, less than 83.7 million square feet were under construction, marking a drop of over 50% in the last 18 months. Only 3.2 million square feet began construction this year up to April.

Boston's Real Estate Investment

Boston remains a strong market for office real estate investment, ranking fourth nationally with over $1.3 billion in assets traded from January to October last year. The city's top five submarkets had 11.3 million square feet under construction across 21 projects.

Cambridge

Cambridge, home to Harvard and MIT, had nearly 3.2 million square feet of office space under construction, representing 22.9% of Boston's total under-construction space. This development accounts for 5.1% of Cambridge's existing 62.9 million-square-foot inventory.

BioMed Realty's 585 Kendall is a notable project in Cambridge, a 600,000-square-foot development set to complete in 2026. Takeda Pharmaceutical Co. has preleased this property, financed by a $315 million loan from Bank of China.

Seaport Innovation District

The Seaport Innovation District had 2.6 million rentable square feet under development as of April, making up 18.5% of Boston's total under-construction office space. This also constitutes 7.5% of the submarket's 34.1 million square feet inventory.

Significant developments include WS Development's One Boston Wharf, a 707,000-square-foot life science building completed in May, and Boston Global Investors' 10 World Trade, a $600 million project set to finish by year-end.

Fenway

Fenway had 2.3 million rentable square feet of office space under construction, accounting for 16.6% of Boston's total office development. This submarket's pipeline represents 14.3% of its total 16.2 million-square-foot stock.

Notable is Meredith Management and IQHQ’s Fenway Center Phase II, a 720,000-square-foot project with a 22-story tower and a 12-story building, aimed at lab and office space.

Medford–Malden

Medford–Malden had over 1.9 million square feet of office space under construction, accounting for 13.9% of Boston's development pipeline. This submarket led in office space deliveries last year with over 1.3 million square feet.

BioMed Realty's Assembly Innovation Park is a major project in this area, a 485,000-square-foot life science tower expected to open by mid-next year, funded by a $514 million package.

Brookline

Brookline had about 1.3 million square feet under construction, representing 28.3% of its total office stock—the highest among the top five submarkets. This accounts for 9.5% of Boston's total under-construction inventory.

Lendlease and Ivanhoé Cambridge’s FORUM, topped out in September, is a notable project. King Street Properties' Allston LabWorks, a 542,000-square-foot development featuring lab, retail, and residential spaces, is also set to enhance Brookline’s stock by the year’s end.