Leasing conditions continue to stabilize with improved market balance

Leasing activity stabilized heading into 2026, with 4.2 million square feet (msf) transacted in 2025, including 2.6 msf in the second half of the year. While this trailed 2024’s 4.8 msf annual total, activity reflected a more balanced mix of transaction types, building classes and submarkets. Occupiers continued to favor stay decisions, highlighted by WilmerHale renewing 201,000 square feet (sf) at 60 State Street and CDM Smith renewing 93,000 sf at 75 State Street. New leases and relocations continue to build momentum relative to prior quarters, led by DraftKings’ planned relocation of their headquarters from Back Bay to 125,000 sf within 225 Franklin Street. As available space within premier Class A buildings in Back Bay and Seaport remain constrained, early spillover demand has begun to support leasing activity across softer market segments, signaling the early stages of more sustained broad-based market momentum.

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