This is a strong validation of the “flight to quality” trend we’ve been seeing in office leasing. Boston Properties (BXP) success underscores how companies are willing to pay a premium for top-tier office space, even as the overall office market remains challenged.
A few key takeaways from this:
-Longer lease terms: A weighted average lease term of over 10 years signals a shift in tenant confidence—companies are committing again after years of uncertainty.
-Higher occupancy in premium offices: A 13% vacancy rate for high-end office space versus 19% for the overall market reinforces that demand is concentrated at the top.
-Corporate return-to-office policies: The push for in-person work is clearly impacting leasing, particularly in premium office buildings.
-The “bifurcated market” dynamic: BXP and other Class A landlords benefit, while lower-tier office space continues to struggle.
#Flighttoquality
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