New edition of Marketscape Monthly

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From Lori Mabardi
Research Manager
Jones Lang LaSalle

Our July edition of Marketscape Monthly shows that Boston’s real estate fundamentals continue to improve. Net absorption through Q2 has already reached 75% of full year 2010 levels. At 19.8% total vacancy, the metro is inching its way off the cyclical peak of 22.5%. This is starting to translate into a return to rent growth.

Overall Boston is ahead of the nation in the recovery along with Silicon Valley, Houston, San Francisco and Denver, due to a similarly highly skilled workforce and a strong concentration in growth areas like high tech, healthcare and life sciences. Office-using employment here has recovered a quarter of losses seen in the recession so far representing an encouraging shift in momentum.

Certain submarkets are clearly outperforming others. For example, total vacancy reached a nadir of 8.4% in the Back Bay, a level not seen since the year 2000. While East Cambridge is dealing with Vertex’s relocation to the Seaport District, it looks forward to the return of now Weston-based Biogen. Rents are up approximately 10% year-over-year in both submarkets.

– Lori

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