Downtown Boston Businesses Continue to Feel Effects from Hybrid, Remote Work

Ever since offices reopened following the worst of the COVID-19 pandemic, business owners have wondered when the “new normal” would settle in. Office employers typically started with one or two days a week in the office for their employees. Many of the firms, from John Hancock to CarGurus, have now settled in at three, and some have instituted four. 

But for Boston's cafes, restaurants, and similar businesses that rely on in-person workers, the current situation with in-office workers could be as good as it gets.

According to a Boston.com report, surveys by the Greater Boston Chamber of Commerce and Massachusetts Business Roundtable reveal that most employers have established hybrid schedules — with no further changes expected to them.

“It has pretty much leveled off here in Boston,” said Tucker White, U.S. office agency lead for market intelligence at real estate brokerage Avison Young.

Some bright spots remain amid the news: Foot traffic downtown rose by 8% during the first six months of 2025 compared to the same time in 2024, according to data from the landlord-backed group. However, this amount was still around three-quarters of the 2019 levels. 

Downtown Business Alliance President Michael Nichols attributes these trends to the lease-up of the new Winthrop Center tower, marketing tech firm Klaviyo's decision to add nearly 100,000 square feet at 125 Summer St., and a third consecutive quarter of increases in occupied office space.

Oxford Properties vice president Matt Polhemus reported that Oxford's offices at 125 Summer St. are approximately 90% leased. Its 225 Franklin St. building is close behind, and ground-floor restaurants Cava and Tatte have reported a boost in revenue.

Despite these successes, however, one in four downtown office spaces remains empty. That's close to 10 million square feet, the equivalent of five John Hancock towers, according to the Boston.com report.

With few large employers seeking to relocate, expand in downtown Boston, or impose all return-to-office requirements, it's difficult to see any substantial shifts occurring anytime soon.