Boston, October 15, 2025
News Summary
Boston’s office market experienced robust activity in the third quarter, with leasing volume hitting a two-year high of 3.4 million square feet. Major new leases and substantial renewals, particularly in Downtown and the Seaport, contributed to this growth. Notably, Hasbro signed the largest office lease for its new headquarters, while BNY renewed a significant lease at One Boston Place. Amid concerns about commercial property values and municipal tax policy, the trend of office-to-residential conversions is also gaining momentum.
Boston — The city’s office market recorded strong activity in the third quarter of 2023, driven by major new leases, sizable renewals and rising leasing volumes across Downtown and the Seaport. Overall leasing reached a two-year high for the market, and Downtown posted its highest quarterly total since before the pandemic.
Top-line market activity
Leasing volume in Boston reached a two-year high in Q3 2023 at 3.4 million square feet. Downtown Boston’s Q3 leasing tally reached 1.91 million square feet, the highest quarterly total since pre-pandemic (2019) levels. Q3 leasing activities increased by over 33% compared to Q2 2023, even without the large leases.
Largest leases and renewals
Hasbro signed a sublease of 264,395 square feet at 400 Summer St. for its new headquarters, marking the largest office lease in Boston for Q3 2023. Financial services firm BNY has renewed its 205,000-square-foot office lease at One Boston Place, 201 Washington St. in Downtown Boston. The BNY lease renewal was reported in a third-quarter market report from CBRE and is the second-largest office lease in Boston for Q3 2023.
Other major moves
KKR signed a 15-year lease for 132,529 square feet at Two International Place as part of its expansion in Boston. KKR will relocate to the new office space accommodating more than 300 employees, primarily serving the firm’s insurance business. Bain Capital renewed its lease at 200 Clarendon St. for 378,000 square feet, while PwC renewed a 335,000-square-foot lease at 101 Seaport Blvd. Major renewals from Bain Capital and PwC kept buildings filled in Boston’s office market.
Mid-market and building-level activity
ASICS has signed a 43,721-square-foot office lease at 179 Lincoln St. in Boston’s Leather District following a $3-million repositioning of the property by owner Synergy. Jason Cameron, Gil Dailey, and Dave Martel are handling leasing at One Boston Place. Chiofaro and PGIM Real Estate are nearing completion of a $100-million capital improvement program at Two International Place.
Trends and policy context
The office-to-residential conversion trend is accelerating, with plans for converting office buildings into 690 apartments approved this year. The state’s MBTA Communities Law continues to attract investors and developers, especially in towns like Lexington that have embraced new zoning. Mayor Michelle Wu’s property tax proposal, which aimed to increase the tax burden on commercial properties, was rejected by the state senate. The fate of commercial property values in Boston was a central concern, with declining values predicted to cause a loss of $1.5 billion in tax revenue over the next five years.
Market implications
Combined, the large new leases, significant renewals and increased leasing velocity shortened vacancy pressure in some buildings even as broader concerns about commercial property values and municipal tax policy persisted. Building owners and developers have responded with capital improvement programs and repositioning projects to attract tenants and support leasing momentum.
Supporting details and figures
- The BNY lease renewal was reported in a third-quarter market report from CBRE and is the second-largest office lease in Boston for Q3 2023.
- Hasbro signed a sublease of 264,395 square feet at 400 Summer St. for its new headquarters, marking the largest office lease in Boston for Q3 2023.
- Downtown Boston’s Q3 leasing tally reached 1.91 million square feet, the highest quarterly total since pre-pandemic (2019) levels.
- Q3 leasing activities increased by over 33% compared to Q2 2023, even without the large leases.
- Jason Cameron, Gil Dailey, and Dave Martel are handling leasing at One Boston Place.
- KKR signed a 15-year lease for 132,529 square feet at Two International Place as part of its expansion in Boston.
- KKR will relocate to the new office space accommodating more than 300 employees, primarily serving the firm’s insurance business.
- Chiofaro and PGIM Real Estate are nearing completion of a $100-million capital improvement program at Two International Place.
- ASICS has signed a 43,721-square-foot office lease at 179 Lincoln St. in Boston’s Leather District following a $3-million repositioning of the property by owner Synergy.
- Major renewals from Bain Capital and PwC kept buildings filled in Boston’s office market.
- Leasing volume in Boston reached a two-year high in Q3 2023 at 3.4 million square feet.
- Bain Capital renewed its lease at 200 Clarendon St. for 378,000 square feet, while PwC renewed a 335,000-square-foot lease at 101 Seaport Blvd.
- The office-to-residential conversion trend is accelerating, with plans for converting office buildings into 690 apartments approved this year.
- Mayor Michelle Wu’s property tax proposal, which aimed to increase the tax burden on commercial properties, was rejected by the state senate.
- The fate of commercial property values in Boston was a central concern, with declining values predicted to cause a loss of $1.5 billion in tax revenue over the next five years.
FAQ
What were the largest leases in Boston for Q3 2023?
Hasbro signed a sublease of 264,395 square feet at 400 Summer St. for its new headquarters, marking the largest office lease in Boston for Q3 2023. Financial services firm BNY has renewed its 205,000-square-foot office lease at One Boston Place, 201 Washington St. in Downtown Boston.
How active was leasing in Boston in Q3 2023?
Leasing volume in Boston reached a two-year high in Q3 2023 at 3.4 million square feet. Downtown Boston’s Q3 leasing tally reached 1.91 million square feet, the highest quarterly total since pre-pandemic (2019) levels. Q3 leasing activities increased by over 33% compared to Q2 2023, even without the large leases.
Which firms renewed or expanded in Q3 2023?
Bain Capital renewed its lease at 200 Clarendon St. for 378,000 square feet, while PwC renewed a 335,000-square-foot lease at 101 Seaport Blvd. KKR signed a 15-year lease for 132,529 square feet at Two International Place as part of its expansion in Boston.
What other notable leases and building moves occurred?
ASICS has signed a 43,721-square-foot office lease at 179 Lincoln St. in Boston’s Leather District following a $3-million repositioning of the property by owner Synergy. KKR will relocate to the new office space accommodating more than 300 employees, primarily serving the firm’s insurance business.
Who is handling leasing at One Boston Place?
Jason Cameron, Gil Dailey, and Dave Martel are handling leasing at One Boston Place.
What building improvements and repositioning are noted?
Chiofaro and PGIM Real Estate are nearing completion of a $100-million capital improvement program at Two International Place. ASICS has signed a 43,721-square-foot office lease at 179 Lincoln St. in Boston’s Leather District following a $3-million repositioning of the property by owner Synergy.
How are policy and zoning affecting investment?
The state’s MBTA Communities Law continues to attract investors and developers, especially in towns like Lexington that have embraced new zoning. Mayor Michelle Wu’s property tax proposal, which aimed to increase the tax burden on commercial properties, was rejected by the state senate.
What is the outlook for commercial property tax revenue?
The fate of commercial property values in Boston was a central concern, with declining values predicted to cause a loss of $1.5 billion in tax revenue over the next five years.
Are office-to-residential conversions happening?
The office-to-residential conversion trend is accelerating, with plans for converting office buildings into 690 apartments approved this year.
Key lease and market figures (at-a-glance)
| Location / Property | Tenant | Square Feet | Type | Notes |
|---|---|---|---|---|
| 400 Summer St. | Hasbro | 264,395 | Sublease / New HQ | Largest office lease in Boston for Q3 2023 |
| One Boston Place, 201 Washington St. | BNY | 205,000 | Renewal | Second-largest office lease in Boston for Q3 2023 |
| Two International Place | KKR | 132,529 | New lease (15 years) | Office for >300 employees; capital improvements nearing completion |
| 200 Clarendon St. | Bain Capital | 378,000 | Renewal | Major renewal keeping building occupied |
| 101 Seaport Blvd. | PwC | 335,000 | Renewal | Major renewal keeping building occupied |
| 179 Lincoln St. | ASICS | 43,721 | New lease | Followed a $3-million repositioning by owner Synergy |
| Downtown Boston (aggregate) | N/A | 1,910,000 | Quarterly leasing total | Highest quarterly total since pre-pandemic (2019) |
| Boston (aggregate) | N/A | 3,400,000 | Q3 leasing volume | Two-year high for the market |
Deeper Dive: News & Info About This Topic
HERE Resources
Revvity Inc. to Cut Over 100 Jobs in Massachusetts
Massachusetts Observes Columbus Day and Indigenous Peoples’ Day
Market Basket Reopens Amid Leadership Crisis
CellCentric Expands U.S. Operations with New Boston Office
Massachusetts Passes Landmark Pay Transparency Act
Exploring October Events Across North Shore Communities
Chaos Erupts at Pro-Palestinian Rally in Boston
Boston Industrial Real Estate Market Shows Resilience in Q3
Closure of Rite Aid and its Impact on Massachusetts Retail
Massachusetts Observes Columbus Day and Indigenous Peoples Day
Additional Resources
- Connect CRE: KKR Signs First Downtown Boston Office Lease at International Place
- Wikipedia: Boston
- Connect CRE: ASICS Signs Big Office Lease in Boston’s Leather District
- Google Search: Boston commercial real estate
- Bisnow: The 7 Biggest Stories of 2024 in Boston CRE
- Google Scholar: Boston office leases
- Connect CRE: Biotech Startup Signs First Lease at Seaport District Conversion Project
- Encyclopedia Britannica: Commercial Real Estate
- Connect CRE: Safehold Acquires Ground Lease on Worcester Multifamily Project
- Google News: Boston office market 2023
Author: STAFF HERE BOSTON WRITER
BOSTON STAFF WRITER The BOSTON STAFF WRITER represents the experienced team at HEREBoston.com, your go-to source for actionable local news and information in Boston, Suffolk County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Boston Marathon, Head of the Charles Regatta, and Boston Harborfest. Our coverage extends to key organizations like the Greater Boston Chamber of Commerce and Associated Industries of Massachusetts, plus leading businesses in finance, biotech, and insurance that power the local economy such as Fidelity Investments, Biogen, and Liberty Mutual Insurance. As part of the broader HERE network, we provide comprehensive, credible insights into Massachusetts's dynamic landscape.
