Search
 

Report: Cambridge Office Rents Will Drop

CAMBRIDGE, MA-Cresa Partner's third quarter market review indicates that rents for class A buildings in the city's office market are expected to drop 3% to 5% next year while office rates for class B space are likely to remain flat.

By Naomi Grossman | Updated on October 15, 2004

CAMBRIDGE, MA-Rents for class A buildings in the city’s office market are expected to drop 3% to 5% in 2005, according to Cresa Partner’s third quarter market review. The report indicates that office rates for class B space are likely to remain flat.

Average asking rents for class A offices are now $30 per sf, while class B averages $23 per sf and laboratory space is $46 per sf with sublease rents usually 25% to 50% less. These figures have remained virtually unchanged for the last three quarters.

According to Daniel Sullivan, a Cresa Partners vice president, office rents for class A space will likely drop because most Cambridge property owners, who were hoping for a fast market recovery, are now resigned to a very slow process. “It’s now more cost effective for landlords to discount their space and retain tenants than it is to lose those tenants and carry the vacant space as a liability,” he says, adding that many companies in Cambridge will likely find flat rents in “class B+ or A-”, quality buildings that may offer fewer amenities.

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.