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Boston trophy office rents hit record highs as law firms lead
JLL data show top-tier high-rise rents averaged $105.0 per square foot in Q3, while average asking rents across the market fell to $66.5.
Trophy office rents in Boston are starting to rise at the highest-quality assets as the wider market lags, according to JLL third-quarter data cited by Bisnow.
Bisnow reports that law firms are helping push rents higher because they remain among the most active tenants and are willing to pay premiums for newer, best-in-class space.
With no construction expected in the near term, Bisnow says existing luxury supply has a long runway for rent growth, driving continued pressure at the top of the market.
JLL Research Manager Bryan Montgomery said people are paying more for commercial real estate now than ever at the top of the market, with Back Bay asking rents near $130 per square foot, about 15% above pre-pandemic levels.