Office rents for Boston’s top-tier properties have reached a two-year high, driven by demand from law firms and a lack of new construction. According to JLL’s third-quarter data, average rents for high-rise buildings stood at $105.02 per square foot, while the overall market average decreased to $66.49 per square foot.
Law Firms Lead the Charge
Law firms are among the most active tenants, willing to pay a premium for trophy space. Greenberg Traurig took the top spot by leasing 82,000 square feet at Hines’ South Station Tower. Paul Hastings signed a 52,000-square-foot lease at BXP’s Prudential Center.
Other sectors are also committing to high-quality space. Engineering consulting firm HNTB Corp. signed a 77,000-square-foot lease at MP Boston’s Winthrop Center. The firm plans to relocate from a building proposed for an office-to-residential conversion.
Market Disparity and Future Outlook
While the top of the market benefits from rent increases, the rest of the market drags down the overall average. Overall Class-A rents decreased from $76.16 per square foot in 2025 to $74.84 in 2026. There are no new offices in the construction pipeline, tightening availability across the nicest buildings.
High-rise availability in Tier 1 properties fell to 3.2% by the end of the third quarter. JLL Research Manager Bryan Montgomery said he doesn’t picture new development happening in Boston for years, as rents are not high enough to support construction costs.
The highest asking rents are in the Back Bay submarket, close to $130 per square foot, 15% higher than pre-pandemic levels. With no new construction expected, existing luxury space has a long runway for rent growth.
Limited Supply and Rising Rents
Shrinking vacancy and rising rents are spurring new construction in other markets, but Montgomery said Boston won’t see new development until at least 2030-2032.
Construction Costs and Rent Growth
Some of the last office buildings to deliver in Boston were South Station Tower and Boston Global Investors’ 10 World Trade, which hasn’t announced any tenants since opening in 2025.
