Makella Houdagba

“Flight to quality” remains the foremost trend in new construction as Boston’s office sector slowly makes its way through this post-COVID cycle. Buildings such as 10 World Trade and South Station Tower have been delivered to round out this cycle of new construction, trophy-class buildings. This creates pressure on aging Class A buildings and their tenant offerings. In a world where companies are trying to bring employees back to the office, amenities have become a primary factor in decision-making.

The first tenants have been announced for the skyline-defining South Station Tower: law firm Jones Day and insurance company FM, which together will occupy more than 90,000 square feet. It’s a notable win for developer Hines—but Boston’s Class A market needs far more leasing activity to shift the tide. These two deals represent less than 10% of the new Class A inventory slated for delivery in 2025.