Search
 

Cloudy Future for Suburban Market

GREATER BOSTON-Spaulding & Slye's fourth quarter market report indicates that high vacancies and declining rents continue to typify the suburban market. Positive absorption could indicate that a healthier market is on the horizon.

By Naomi Grossman | Updated on December 31, 2003

GREATER BOSTON-High vacancies and declining rents continue to typify the suburban market according to Spaulding & Slye’s fourth quarter 2003 market report. But a positive absorption of nearly 600,000 sf of space could indicate that a healthier market is on the horizon.

The suburban market had an availability rate of 29%, slightly higher than the 28.5% rate in the second quarter of the year. Tami Thompson, a principal at Spaulding & Slye, tells GlobeSt.com, that while those rates are likely to remain high for the near future, certain markets–such as the northwest and the Central 128 markets–have experienced positive absorption for the first time in three years.

“We’re seeing increased activity,” says Thompson. “We’re not seeing a recovery, but we are seeing a leveling off.” Thompson notes that the rates need to get down to at least 16% to start seeing any downward pressure on the rents. “There are still a lot of alternatives,” she says, noting that a tenant interested in 15,000 to 20,000 sf has about 80 options in each suburban market.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.