Boston Office Buildings Sell at Steep Discounts
Owners and lenders are offloading commercial properties as loan maturities pressure the local market.
Updated on Oct. 29, 2026 in Commercial
Live Poll
Do you believe now is a good time to invest in commercial real estate?
Boston office buildings are trading at steep discounts as lenders stop extending loans on underperforming commercial assets. The city saw $2.2 billion in office sales during the third quarter of 2026, marking a 23.7% increase in transaction volume compared to the previous year.
Why it matters
The surge in sales reflects a widespread reckoning for commercial property owners facing broken capital stacks and upcoming loan maturities. This shift indicates that lenders are no longer willing to delay, forcing properties into private sales or foreclosure auctions to clear debt.
Boston office sales reached $2.2 billion in the third quarter of 2026, a 23.7% year-over-year increase. Recent transactions show significant value drops, including 100 Summer St. selling for $260 million at foreclosure, down from its $806 million purchase price in 2019.
The players
Rockpoint
A real estate investment firm that recently acquired 100 Summer St. through a foreclosure auction.
Jamestown
An investment and management firm previously involved in major Boston commercial acquisitions.
Synergy
A Boston-based real estate firm that invests in and manages commercial office properties.
LaSalle Investment Management
A global real estate investment manager that holds various commercial asset portfolios.
Kendall Capital
An investment firm active in acquiring discounted commercial office real estate.
The details
Properties are being sold as lenders reach the end of their patience for loan extensions on struggling office assets. Investors are acquiring these buildings through a mix of private transactions and forced foreclosure auctions. This process occurs as building owners grapple with significant debt loads that are no longer sustainable under current market conditions.
Timeline
2016: LaSalle Investment Management purchased 10-20 Channel Center St.
2019: Jamestown and Rockpoint acquired office properties.
January 2026: North Colony Asset Management purchased 10-20 Channel Center St.
June 2026: Kendall Capital purchased 18 Tremont St.
July 2026: Synergy and Axonic Capital purchased 265 Franklin St.
The Home Front
These transactions sit within a national trend of commercial real estate repricing as owners confront the CMBS hard maturity wall. With $7.7 billion in office loans facing maturity in 2027, the market is bracing for continued shifts in property ownership and valuations.
While these shifts primarily affect commercial real estate investors, local property owners should monitor how these valuations influence city tax bases and infrastructure funding. Residents may want to track ongoing developments in their neighborhood commercial hubs to understand potential changes in local business accessibility.
The takeaway
The wave of discounted office sales highlights a pivot in the commercial sector as capital constraints force owners to exit long-held positions. Keep an eye on local commercial property tax assessments, as shifts in office building valuations can impact city budget allocations and public services.
Further reading
Learn more about local business and investment shifts in our Boston Commercial section.
Source note: This article includes information reported by Bisnow.
Live Poll
Do you believe now is a good time to invest in commercial real estate?
