Greater Boston’s office market had the strongest showing in five years as the region’s vacancy rate fell to 17 percent, according to Colliers International.
Thomas Grillo
Real Estate Editor- Boston Business Journal
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Greater Boston’s office market achieved more than 2.8 million square feet of positive absorption last year, the strongest showing since 2007, as the region’s vacancy rate fell to 17 percent, down from 18.4 percent at the start of the year, according to Colliers International.
The Fourth Quarter 2012 Greater Boston Market report found the latest data represents the seventh consecutive period of positive absorption in the downtown Boston market, dropping the vacancy rate to 13.1 percent. The strength of the recovery in the Financial District was particularly notable in 2012, with nearly 1.4 million square feet of positive absorption the most for the submarket in over 20 years, the report said.
East Cambridge’s lab market recorded nearly 500,000 square feet of positive absorption in 2012, causing the vacancy rate to decline to 10.9 percent from 17 percent, researchers found. Construction activity is brisk in Cambridge with build-to-suits totaling 1.8 million square feet under construction and another 500,000 square feet in the pipeline.
Annual absorption in the suburban office and RD markets surpassed 2010 and 2011 levels and the vacancy rate dipped below the 20 percent mark for the first time since early 2009. As business and consumer confidence has slowly but steadily improved, tenants have been more willing to sign deals and consider relocations and expansions than they were 12 or 24 months ago, the survey said.
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