Boston Office Building Values See Deep Cuts
Investors are acquiring city office properties at steep discounts as lenders force sales on maturing loans.
Updated on Oct. 29, 2026 in Commercial
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Boston office buildings are changing hands at significant discounts as lenders stop extending loans on underperforming assets. This shift led to $2.2 billion in sales during the third quarter of 2026, marking a 23.7% increase in volume compared to the previous year.
Why it matters
The surge in activity is driven by owners and lenders rushing to fix broken capital stacks as commercial mortgage-backed securities reach hard maturity deadlines. Investors are capitalizing on these distressed assets, betting on the long-term fundamentals of the Boston office market.
Boston office sales reached $2.2 billion in the third quarter of 2026, a 23.7% increase over the same period last year. Investors are acquiring major properties at steep discounts, such as 100 Summer St. which sold for $260 million after an initial $806 million purchase in 2019.
The players
Rockpoint
A real estate investment firm that recently acquired 100 Summer St. through a foreclosure auction.
Jamestown
A real estate investment and management company active in the Boston commercial market.
Kendall Capital
An investment firm that recently acquired 18 Tremont St. at a significant price reduction.
Synergy
A commercial real estate operator that partnered to acquire 265 Franklin St. this year.
North Colony Asset Management
An investment manager that purchased 10-20 Channel Center St. earlier this year.
The details
Lenders are increasingly refusing to extend loan agreements for struggling office properties, forcing owners to put buildings on the market or face foreclosure auctions. This process is creating a wave of transactions as new buyers acquire these assets at prices far below their previous valuations. For example, 18 Tremont St. sold for $30 million in June 2026 after trading for $103 million in 2019, reflecting the reset in office building market value.
Timeline
2016: LaSalle Investment Management purchased 10-20 Channel Center St. for $119 million.
2019: Jamestown and Rockpoint purchased significant office properties.
January 2026: North Colony Asset Management bought 10-20 Channel Center St. for $52 million.
June 2026: Kendall Capital acquired 18 Tremont St. for $30 million.
July 2026: Synergy and Axonic Capital purchased 265 Franklin St. for $116 million.
Money Landscape
The current wave of property sales is occurring as a massive volume of commercial loans reach hard maturity deadlines. Investors are resetting valuations to align with current market conditions as $7.7 billion in office sector CMBS debt faces maturity in 2027.
While these transactions primarily involve institutional investors, the shifting landscape can affect local property tax assessments and business services. Residents and local business owners should consult a professional to understand how local market shifts may impact their specific neighborhood commercial property taxes.
The takeaway
The Boston commercial real estate market is undergoing a significant price correction as distressed assets change hands. Keep an eye on local property tax filings to see how these valuation changes influence public revenue in the coming fiscal year.
What happens next
The office sector faces $7.7 billion in commercial mortgage-backed securities reaching hard maturity throughout 2027.
Further reading
For broader trends in property values, visit Commercial.
Source note: This article includes information reported by Bisnow.
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