Year-to-date office data for the Boston market showed a negative 1.1 million sf of absorption, which was offset by one million sf of positive absorption in the suburbs and an additional 223,000 sf in the Cambridge office market. The losses were attributed to the 1.6 million sf of new direct and sublease space in the Back Bay, Financial District and Charlestown, associated with financial sector mergers and acquisitions such as Bank of America, State Street and Deutsche Bank. The Cambridge market recorded negative 81,000 sf during the quarter, but still held positive for the year.

The suburbs were the bright spot according to the firm, with Waltham leading the way with 496,400 sf of positive absorption, followed by Westborough's 287,100 sf and Marlborough's 282,000. The three markets have benefited from their proximity to the Turnpike and may be indicators of tighter market conditions ahead for the suburbs. Waltham has witnessed a marked shift in leasing momentum, posting a 6.3% drop in availability to 27.4%, posting its highest net absorption since 2000.

Jay Nugent, assistant vice president for Spaulding and Slye, expects the trend in the suburbs to continue into the fourth quarter and beyond. "We expect to see more positive absorption, because we're seeing a lot of rolling five-year leases and venture capital, and we have a handful of large [100,000 sf plus] tenants coming aboard," he says. "We're still a long way off from equilibrium, and nobody can justify a significant bump in rents, but it's a start."