BOSTON—The greater Boston office market saw 775,000 square feet of office space absorption in the second quarter, the region's fifth straight quarter of positive absorption.
However, the region's overall vacancy rate held steady at 13.8% due to new office space delivered during the last three months, according to a report released by Transwestern | RBJ.
“It's a very good sign of a strong office market to see growth permeate the entire region, not just in one or two areas,” says Steve Purpura, Transwestern | RBJ executive managing director and Northeast market leader. “The positive gains reflect the broader economic picture in the region, including the low unemployment rate and a very active public markets sector.”
Most major submarkets throughout the greater Boston region experienced positive office space absorption, the brokerage says. High-quality space is a driving force in the market, with Class A buildings in the Back Bay and Financial District accounting for 486,000 square feet of absorption. Another highlight of the Transwestern | RBJ report is that East Cambridge rents reached $60 per square foot for the first time since 2000. Class B buildings are also benefitting from the strong market, with Downtown Boston Class B rents growing at a faster rate than their Class A counterparts.
The vacancy rate in Cambridge dropped to just 6.6%, the Route 128 market remained at 15.2%, while the Interstate 495 submarket dipped to 20.9%. The joint Framingham/Natick submarket has a second quarter vacancy rate of 9.4%. In just the past 12 months, Newton and Wellesley rents increased 27.3% and 23.4%, respectively, according to Transwestern | RBJ.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
