North Station Office Market Hits Lull

BOSTON-Multiple surveys portray a sluggish first quarter in the North Station office market, but at least one broker has a contrary assessment supported by a plethora of recently linked leases, including several that pushed their buildings to full occupancy.

Having participated in many of those Q1 transactions, Karyn McFarland of Grubb & Ellis is effusive about North Station’s opening frame although she tells GlobeSt.com there has been a more recent drop in demand. “Things were really active, but it has slowed down considerably over the past three weeks” McFarland relays.

Possible reasons cited by some professionals include an uncertain economy and theory that it might pay to “sit on the sidelines a bit,” a sentiment that McFarland does not share. North Station’s average asking rent has trended up to $31 per sf, and some deals are now cresting over the $40 per sf level, the broker explains. “I think it’s a temporary lull,” she says of the present slide. Tenants facing imminent lease expirations will have to act soon, she adds, especially since many have already delayed decision making in the face of a record run-up in rents in 2007.