FSP · 10-Q · 2026Q1 · Full report

Market demand trends

FRANKLIN STREET PROPERTIES CORP /MA/ · 2026-04-28 · Importance 23 · Surprise 24

Management reports an increased number of larger prospective leasing opportunities across its markets but notes that transaction volume for office assets remains below historical levels and liquidity is constrained. Buyer activity is stated to be weighted toward private, opportunistic, and non-traditional capital, although early signs of stabilization are being observed. Existing vacancies are being actively marketed to numerous potential tenants, but management cautions that geopolitical events, broader economic conditions and long-term COVID-19 effects may limit or delay new leasing at least through Q2 2026. These dynamics are shaping leasing, disposition and capital strategies across the Dallas, Denver, Houston and Minneapolis markets.

Key facts

• The Company believes it is beginning to observe early signs of stabilization in the office market which may represent initial stages of a broader recovery over time.
• The Company believes the capital markets environment for office assets remains uneven with transaction volume below historical levels and buyer activity weighted toward private, opportunistic, and non-traditional capital as of the report date.