BOSTON—Greater Boston's commercial real estate office market extended its positive absorption streak to eight quarters, with tenants absorbing 493,000 square feet of space during first-quarter 2015, according to Transwestern | RBJ's “officeSTATus – Q1 2015” report. The activity drove market-wide vacancy down to 12.7%.
“Greater Boston's office market is on a remarkable stretch of positive activity,” says Chase Bourdelaise, research director for the Northeast. “And based on the number of high-profile move-ins scheduled for the remainder of the year, as well as the 4.1 million-square-foot construction inventory, we anticipate the run to continue.”
In Boston CBD, vacancy dropped to about 9%, with the Financial District submarket hitting 10% vacancy for the first time since 2008. Cambridge vacancy rose slightly to nearly 9% due to some large tenants moving out of market; however, availability dropped dramatically from 11.5% to 8.8% in the past quarter.
Along Route 128, vacancy dropped to 13% as tenants absorbed 442,000 square feet of space. The Interstate 495 submarkets had negative absorption of 89,000 square feet, although Class A asking lease rates crept upward.
In addition to “officeSTATus,” Transwestern | RBJ publishes 10 other quarterly research reports: “indSTATus,” which focuses on industrial property types (manufacturing, warehouse and flex) and individual “marketSTATus” reports on nine crucial submarkets. The firm's biotechnology-focused report, “bioSTATus,” is released twice a year.
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