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Correction in Technology-Based Office Space Expected

BOSTON-The frenzied high-tech real estate market of the past few years may face a correction, according to local experts. Route 128, which has seen rates soar to $50 per sf, will be hardest hit.

By Naomi Grossman | Updated on November 08, 2000

BOSTON-As high tech companies nationwide face reorganizations, unpredictable stock prices and shakedowns, the Boston real estate industry may have to rethink its future.

Route 128 and Interstate 495 have been witness to an unprecedented boom in office space and lease rates, most of it from high-tech companies. At one time, $40 per sf was thought to be the barrier rate on 128 but since then rates have shot past that up to $50 per sf.

“We’re going to see a rolling technology correction,” says Stephen Coyle, director of market research at Boston–based Property & Portfolio Research in an interview with Globest.com. “The artificial exuberance will pull lease rates down somewhat. “

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