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Back Bay Leads Way as Boston Rents Soar

BOSTON-A lack of office space is sending rents upwards and tenants scrambling for options.

By Joe Clements | Updated on September 27, 2007

BOSTON-New office product is finally on the way here, but it may not do too much good for tenants over the near term, or so it would seem from the latest market survey by Jones Lang LaSalle. After percolating upwards for most of the year, rental rates blasted off in the third quarter, according to the report, with the Back Bay’s average asking level now topping $60 per sf, and the Financial District over $57 per sf after just hitting the $50 level at mid-year.

“The growth is pretty aggressive,” acknowledges JLL broker Ben Heller, who cites a dearth of supply as the main catalyst, coupled with robust leasing activity, especially among small- and mid-sized tenants. JLL says tenant requirements are up 26% from mid-year even after several larger deals have now been completed.

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