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Cambridge Office Market Hit Hard by Tech Downturn

CAMBRIDGE, MA-This area's office market is suffering more than most in the recent economic slowdown and high tech bust. Its heavy emphasis on high-tech tenants has caused its vacancy rate to plummet with no signs of a recovery on the horizon.

By Naomi Grossman | Updated on June 27, 2001

CAMBRIDGE, MA-While the high-tech bust and economic slowdown has not been kind to most office markets, it has been particularly cruel to this area, which was laden with high techs and dot-coms until recently. According to Torto Wheaton Research, a year ago, the vacancy rate here was 3%. By the end of the first quarter that figure rose to 5.5% and the number has since shot up to 9.6%.

That number does not even include available space, in which space might be occupied but its owners are looking to sublet the space. Jon Southard, a senior economist at Torto Wheaton, tells GlobeSt.com. “I’ve never seen this before.”

Not surprisingly, Southard blames the high-tech bust for the Cambridge market’s quick plunge. He is quick to point out that it’s not only dot-coms or only the small players that are giving up space. The larger tech-related companies are also responsible for putting space on the market here. Those companies include Cambridge Technology Partners, Palm Inc., Scient, Art Technology Group and Akamai Technologies. Reportedly, tech-related companies have put over 800,000 sf of space back on the market this year.

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