Some submarkets, including Waltham, and Boston's Back Bay and Financial District, are already beginning to tighten as businesses continue to expand. "In certain markets, businesses could begin to become concerned about their ability to accommodate additional staffers in future quarters and you may see some absorption ahead of actual head count increases."
Waltham experienced 170,000 sf of positive absorption in class A space driving lease rates up an average of 30 cents per sf overall, the report says. The limited amount of premium pace has also sparked a construction boom in the area with more than one million sf of new class A office space currently either under construction or planned.
In Boston, 64% of all absorption in Central Boston occurred in the Financial District and the Back Bay as the demand for quality "premium view" office suites continued to drive that submarket. Seven major projects are also in the planning stages for the Central Boston area, the report found.
But it's not only the city and suburban markets that are enjoying the leasing boom. The Route 495 submarket is also benefiting with more than two million sf of office absorption in the last seven quarters, accounting for 37% of all the absorption in the Greater Boston market.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.