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Tenants' Market Persists in Cambridge

CAMBRIDGE, MA-Cresa Partners' 2004 first quarter real estate market report forecasts that the area's office and lab markets will continue to experience rising vacancies and decreasing rents. The report indicates that rents may drop 1% to 3% through mid-year before they stabilize.

By Naomi Grossman | Updated on May 09, 2004

CAMBRIDGE, MA-The area’s office and lab markets will continue to experience rising vacancies and decreasing rents, concludes Cresa Partners’ 2004 first quarter real estate market report. The firm, which specializes in tenant representation, forecasts that Cambridge rents may drop 1% to 3% through mid-year before they stabilize during the second half of 2004 and the first quarter of 2005.

Rents that peaked at $65 per sf for class A office buildings in the third quarter of 2000 now average $30 per sf for class A space and $22 per sf for class B space, figures that are holding steady since the fourth quarter of 2003, says Christopher Crooks, Cresa Partners principal and head of the firm’s Cambridge market group.

The report indicates that overall vacancy is up one point to 24.5%, and lab space, which was 18% last quarter, has risen to 23%; the lab space jump is largely attributable to the 290,000 sf of sublease space that Vertex Pharmaceuticals has made available.

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