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Boston tenants increasingly renew office leases amid higher build-out costs
CBRE data cited by Bisnow shows renewals drove 51% of Boston office leasing in Q2, totaling 583K square feet, up from 17% in the first quarter and in Q2 2025.
Boston’s office market is seeing more tenants choose to renew rather than relocate, as higher costs to build out new space and tenants’ leverage in a slow market help them negotiate better lease terms with existing landlords, according to Bisnow.
The story describes The Brattle Group renewing its 10-year lease at One Beacon St. after landlords including MetLife and Norges Bank offered concessions and allowed the firm to contract its space from 60K square feet to 42K square feet across the 26th and 27th floors, with the company keeping a location near the Government Center MBTA station.
Bisnow also points to CBRE findings that 51% of second-quarter leasing activity in Boston, or 583K square feet, came through renewals, up from 17% in the first quarter and 17% in Q2 2025. Among the eight largest leases tracked in Q2, six were renewals, including CIC’s 118K square feet lease at 50 Milk St., Autodesk’s 73K square feet lease at 21-25 Drydock Ave., and Audley Travel’s 48K square feet lease at 77 N. Washington St.
The article adds that Boston’s office market vacancy rate stands at 18.7% and frames the renewal trend as competition for landlords, who are adding amenities and investing in buildings to counter newer development tied to the “flight-to-quality” theme. It cites Tishman Speyer’s lease extensions last month for nearly 150K square feet across five tenants at its newly renovated 125 High St. property.