BOSTON, July 10, 2014 /PRNewswire/ — Greater Boston’s commercial real estate office market maintained its strong pace, closing a fifth straight quarter of positive absorption, according to the “officeSTATus – Summer 2014” report from Transwestern | RBJ that covers greater office market, major submarkets, the local economy and interesting trends. During second-quarter 2014, the region absorbed 775,000 square feet of office space, with positive absorption seen in each of the major submarkets.
Overall vacancy remained steady at 13.8 percent, due to new office space delivered during the quarter. High-quality space still drives the market, with Class A buildings in the Back Bay and Financial District accounting for 486,000 square feet of absorption and East Cambridge rents reaching $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.
“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,” said 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.”
Vacancy in Cambridge dropped to a scant 6.6 percent, while the Route 128 market remained at 15.2 percent and the Interstate 495 submarket dipped to 20.9 percent. The joint Framingham/Natick submarket has a 9.4 percent vacancy rate. In just the past 12 months, Newton and Wellesley rents increased 27.3 percent and 23.4 percent, respectively.
This quarter’s “Market Interesting” feature looks at how luxury living development has exploded in nearly every neighborhood in Boston – more than 8,000 residential units are expected to hit the market between 2014 and 2016, according to a recent article in the Boston Globe. The “officeSTATus” report highlights eight of the developments, with the size, number of units and date of opening.
Download the full “officeSTATus – Summer 2014” report here.
In addition to “officeSTATus,” Transwestern | RBJ publishes 10 other quarterly research reports: “indSTATus,” which focuses on industrial property types (manufacturing, warehouse and flex) and individual “marketSTATus” reports on nine crucial submarkets. The firm’s biotechnology-focused report, “bioSTATus,” is released twice a year. In total, the firm produces an industry-leading 46 reports per year, in addition to custom research projects for clients.
ABOUT TRANSWESTERN
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com and transwestern.com/Boston and follow us on Twitter: @Transwestern and @TranswesternBOS.
Media Contact:
Dan Foley
508.272.0017
dan.foley@transwestern.com
SOURCE Transwestern | RBJ
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