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Mid-Year Report: Market Favors Tenants

BOSTON-The city is still a tenant's market, says a mid-year market review by Cresa Partners Boston. Rents have bottomed out and the report does not anticipate much expansion activity in the near future.

By Naomi Grossman | Updated on June 29, 2004

BOSTON-The city’s market continues to favor tenants as rents have bottomed out, according to a mid-year market review by Cresa Partners Boston. The report also does not anticipate much expansion activity in the near future.

“Now that rents have bottomed out, you might say it’s ‘bottoms up’ for corporate space users,” says Joe Sciolla, managing director of the firm. “For tenants whose leases are expiring, this is a perfect time to renew and restructure, locking into very favorable rates for the next five years or so. The market continues to be sluggish, but that’s good news if you’re a tenant.”

Sciolla says hundreds of local companies that signed office leases at the peak of the market five years ago have contracts that are about to expire. “Rents have almost been cut in half during the last five years, so companies have an opportunity to leverage the soft market conditions and save an average of $5 to $10 per sf, which can translate into many thousands of dollars,” he points out.

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