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As companies continue to adapt to post-pandemic work models, New Hampshire’s office space market remains active and resilient. Our expert shares insights on current demand trends, the impact of hybrid work, and how landlords and tenants are navigating evolving space needs. From right-sizing office footprints to downtown conversions, the market is shifting, creating challenges and opportunities for businesses across the state.
Panelist: Doug Martin, Vice President & Principal, Colliers in New Hampshire, colliers.com
How would you characterize the current state of the office space market in New Hampshire, both in terms of demand and availability?
We’re seeing steady office demand across the board, with local companies looking for smaller suites as well as larger users that need 10,000 square feet or more. Southern New Hampshire, in general, has stayed busy and that includes the Manchester submarket, where users are consistently active.
The Manchester submarket vacancy rate is approximately 8%, which is considered healthy. That said, finding the right space isn’t always easy. While there are several availabilities, factors like location, layout and building condition can quickly narrow the field. To stay competitive, landlords are investing in their properties and remaining flexible with lease terms.
One interesting trend is the increase in office-to-residential conversions, particularly in downtown Manchester. Over 360,000 square feet have been taken offline for apartment redevelopment — most of it was vacant. These conversions have helped keep vacancies in check and eased some of the pressure in the market.
What long-term effects are you seeing from the hybrid and remote work trends on office leasing across the state?
The hybrid work trend appears to be the new norm, with a lot of companies encouraging their teams to come into the office more often. Companies see value in face-to-face time, especially when it comes to collaboration, team building, and creating and maintaining culture.
What we’re seeing is a blended approach, with companies overlapping remote and in-office work, and that hybrid model is shaping how space is used and how buildings operate. Interestingly, it’s helped improve functionality at some office properties, particularly when it comes to parking. Even in areas where space is at a premium, like Manchester’s Millyard or other downtown cores, access to on-site and on-street parking has improved, because buildings aren’t at full occupancy five days a week.
Occupancy rates in many buildings remain strong, but that doesn’t always mean every desk is in use every day. The hybrid approach has allowed businesses to right-size their footprint while still maintaining a strong office presence.
