July 7, 2020
Despite the overall disruption of the ongoing COVID-19 pandemic, the office leasing team at Colliers International’s Boston office has been able to secure several leases of late. Of note, the team recently inked nearly 85,000 square feet of leases in the second quarter alone at KS Partners’ three-building Dedham Row portfolio.
Connect caught up with the team to discuss the current landscape of office leasing in Boston and the surrounding metro.
Q. Can you talk about the difficulties in securing office leases right now in the midst of the COVID-19 pandemic?
A. It’s been incredibly slow in the market. Now that we are in Phase 3 though, there have been signs of life and we are seeing companies start to tour given the pent-up demand and upcoming lease expirations that need to be solved for. That said, not many deals were getting done in Q2. The activity and the leases signed in the Dedham were mostly with companies who were existing Tenants in the portfolio and needed to grow by 5k, 10k or 15k square feet. This was solid growth demand that KS Partners was able to accommodate, which was excellent.” — PJ Foster, Senior Vice President
Q. Are you seeing less demand for office space right now or are companies taking advantage of this time to secure space?
A. We’ve been seeing less demand than usual to date. Companies are unsure of the future and what their space needs will be and while there is still some pent-up demand, it’s been slow.” — John Real, Senior Advisor
Q. What are your overall thoughts on the office leasing sector in Boston over the next 6-12 months? It sounds like you’ve still been able to secure deals so do you have positive outlook?
A. I think we will see some companies that are based in the city migrate into the suburbs where employees wont rely on public transportation or have to hand their car keys over to a valet before getting into a crowded elevator to go up 10+ stories. The ability to park in a lot or garage and walk up 1-2 flights seems much more attractive these days.” — Kevin Brawley, Senior Vice President
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