Tuesday, April 3, 2012, 11:16am
The Greater Boston office market enjoyed a strong start to the year, according to a new quarterly research publication released this morning by Richards Barry Joyce Partners LLC (RBJP).
According to the report by the Boston-based commercial real estate firm, the market posted a solid quarter to start the year, with overall vacancy dropping slightly to 15.3 percent. In the fourth consecutive quarter of positive absorption, tenants took more than 963,000 square feet of space off the market, the highest quarterly total since 2007.
During the past four quarters, 85 percent of the roughly 3 million square feet of positive absorption occurred in five areas – Waltham, Route 128 North, Cambridge, Class A Financial District and Back Bay space. Two of those submarkets – Back Bay and East Cambridge – have each seen Class A asking lease rates spike more than 20 percent since 2010.
“During our current four-quarter stretch of positive absorption, each quarter has boasted higher absorption rates than the preceding period, indicating strong underlying tenant fundamentals,” said Brendan Carroll, senior vice president, Richards Barry Joyce Partners.
“Combined with other economic indicators, such as declining unemployment figures locally and a very strong quarter in the stock markets, these findings provide reason for optimism in near term absorption expectations,” he said.
The report also said:
- Some Class B landlords in areas with high vacancy lowered rents in the quarter in an effort to fill long-empty spaces.
- Seaport District properties are poised for a dramatic vacancy drop in 2012.