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Report: Buttressing the Office Market

BOSTON-The Greater Boston area is looking to stay pat, experiencing lower sublease space, a limited construction pipeline and proactive landlords.

By Ryan Clark | Updated on April 03, 2009

BOSTON-The signs of the times for office are nationally downward trending rents and rising vacancy. Greater Boston is not immune to these ails, but a fortified market and savvy landlords are holding strong here amid the country’s financial struggles, according to Richards Barry Joyce & Partners Q1 20009 officeSTATus report.

The office market here has seen 1.1 million square feet of negative absorption in Q1 of 2009, pushing vacancy up 1%. Class A asking lease rates dropped $0.59 to $38.75 per square foot, according to Richards Barry Joyce & Partners.

The CBD has seen a higher rate drop as asking lease rates fell 13% to $53.22 per square foot, as sublease availability jumped up 88% over two quarters in the Financial District, Back Bay and Seaport District. Much of that has come from downsizing law firms which contributed to 122% increase in class A sublease space coming onto the market in the Financial District over the last three quarters. Sublease jumped 98%, while direct available space upticked 34% over two quarters in Cambridge, as well.

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