BOSTON-Boston is back – with a vengeance it may seem as Cushman & Wakefield’s midyear analysis of the commercial real estate market shows absorption in key metro neighborhoods here. In the city’s Financial District, second quarter vacancy rates show a drop of 0.4% according to a recent press release. Further, the area has seen a 300,000 square foot increase in occupancy up to the same point in time.
And in the coveted Back Bay neighborhood, the same figures rest at a near equilibrium with its vacancy rate at 5.7%.
“Boston’s economic expansion and job growth, combined with powerful demand for urban life-style communities are driving the recovery in Boston’s real estate markets,” Robert E. Griffin, Jr., Cushman & Wakefield’s New England Region president commented. “Renovation and redevelopment in the Fenway, Cambridge and Seaport, together with an extremely tight market in the Back Bay are underpinning Boston’s status as a global gateway city. For investors, demand is extremely hot for well leased office, industrial, retail, multifamily and Medical Academic.”
Not only Boston is experiencing occupancy booms – according to the same release, Cambridge is also faring well. The Mass Ave/Harvard Square office submarket also reported a vacancy decrease to 2.5% (the area’s lowest). A vacancy rate of 6.4% over in the Kendall Square/East Cambridge area was also reported for office properties.
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