Boston’s Office Market Is in Trouble, and That Trouble Could Be Yours
Boston office buildings have taken a massive hit. According to a recent Wall Street Journal report, the value of commercial office buildings in Boston has plummeted by as much as 50% since 2019. The city’s vacancy rate has doubled, from 6.7% to 14.2%, and major properties like One Lincoln have fallen into foreclosure, selling for 60% less than they were refinanced for just three years ago.
Not in the real estate game? You’re still in the crosshairs.
Traditional commercial lease structures are not built to absorb volatility like this. The minute you sign a lease, you lock yourself into a set of fixed and variable costs that stay the same, even as the world around you changes dramatically.
Let’s break the costs down:
Fixed Costs: Your Non-Negotiables
These are the expenses you’ll face no matter what:
Base Rent
Often your single largest monthly expense. And while building values may be falling, don’t expect your rent to reflect that.
Tenant Improvements (TIs)
If you’re signing a lease, get ready to pay for the buildout, especially if the space is a white box. Most TI allowances fall short, leaving you to cover the gap. And thanks to recent tariffs, the cost of building materials has skyrocketed and driven buildout costs over $200-$250/SF (reminder, market allowance in downtown Boston is typically in the $65 range) Translation? Your budget just blew up. Let’s be real, the landlord isn’t eating that cost. You are. Here’s a quick snapshop:
- Steel prices have surged by 15%–25% since January 2025.
- Aluminum costs have increased by 8%–10%.
- Lumber, especially from Canada, now faces tariffs up to 34.5%, leading to a 17.2% year-over-year price hike.
Furniture, Fixtures, Equipment (FF&E)
Desks, chairs, IT infrastructure….it all adds up, fast.
Security Deposits
Expect to put down 1–3 months’ rent upfront.
Legal, Architectural, and Brokerage Fees
Just getting the deal signed costs tens of thousands of dollars.
Variable Costs: The Unpredictable Pile-On
Here’s where things get especially risky in today’s environment:
Common Area Maintenance (CAM) & Operating Expenses
These fluctuate year to year, snow removal one winter, HVAC repairs the next.
Utilities & Cleaning
Triple net leases (NNN) mean you’re on the hook for everything from water to window washing.
IT Infrastructure & Support
You’ll pay for your own high-speed internet, AV setup, security systems, ongoing support and more.
Underutilized Space
With hybrid work on the rise, many teams are in the office just a few days a week, but you’ll still be paying 100% of the rent.
And here’s the kicker: as office values fall, cities like Boston are scrambling to shift the tax burden. This year, residential homeowners saw a 9%+ spike in their property taxes, with some bills more than doubling. Why? Because Boston’s commercial tax base is shrinking, and that $1 billion shortfall has to come from somewhere.
If you’re a commercial tenant, don’t assume you’re off the hook. Landlords facing declining property values and rising tax bills often pass those costs on to tenants, either directly or through higher CAM charges. That means your lease isn’t just expensive, it’s exposed.
Workbar: Ditch the lease, keep the team together
We built Workbar for this moment. As leases grow riskier and less justifiable, our flexible, fully furnished offices let you scale up or down with zero buildout, zero hidden fees, and no long-term commitments.
- No furniture or IT costs. It’s all included.
- No tax exposure or CAM surprises. Just one transparent monthly price.
- No underused square footage. Pay only for what you need, when you need it.
Workbar gives your team room to thrive, without the liabilities that come with a lease. And unlike a traditional office, you won’t have to bribe your employees to show up, they’ll actually want to be here. You’ll get the best of both worlds, private office space you can make your own, plus access to our regional network of 11 locations across Greater Boston.
