BOSTON—After a lackluster winter, the Boston regional commercial real estate market picked up quite nicely, according to commercial real estate services firm Cassidy Turley.
Fueled by deals in the second quarter, Boston has posted 757,764 square feet of net absorption so far this year—the strongest first half the city has had since mid-year 2005, according to the Cassidy Turley Q2 2014 Marketwatch report that covers the commercial real estate markets in Boston, Cambridge and surrounding suburbs.
In the second quarter, shared work space companies have fueled growth, with WeWork taking more space at 745 Atlantic Ave. Cassidy Turley notes that after committing to the ninth and 11th floors in the second quarter, WeWork now occupies all but one-and-a-half floors of the building. The firm also leases 48,000 square feet at 51 Melcher St.
Large transactions in the second quarter in Boston include AltiSource’s 50,000 square-foot deal at 321 Summer St. and Simplisafe‘s lease for 20,000 square feet at 10 Milk St.
Tenants whose leases are coming up for renewal in the Seaport now face the reality that even though they may have leased their current space in the high $20s five years ago, a renewal will likely be in the high $30s to low $40s, the Cassidy Turley report states.
The big news in the second quarter in the Cambridge market was the requirement nicknamed “Project Tiger” touring sites looking for 200,000 square feet of space
Another significant trend both in Boston and the surrounding suburbs is the plethora of mixed-use projects on the drawing boards or under construction. Those projects include Assembly Row in Somerville; Stations Landing in Medford; Market Street in Lynnfield; Northwest Park in Burlington; 1265 Main in Waltham; CityPoint in Waltham and Arsenal Street in Watertown. Those ventures are in addition to downtown projects that include: Lovejoy Wharf, Seaport Square and the pending redevelopment of the Government Center Garage, the Cassidy Turley states.