Constrained construction and heated demand for office space in the most active segments of the United States office market are already fueling prospects of rental increases and new office property development in 2013 and into 2014. An expansion period is approaching for the high-quality urbanized office sector of trophy skyscrapers known as the Skyline, according to Jones Lang LaSalle’s Spring 2013 United States Skyline Review.
“In all but a handful of the Skyline markets, large tenants will have few existing options to consider and thus will be forced to look at proposed development options if they desire to explore relocation options,” said John Sikaitis, Senior Vice President of Research at Jones Lang LaSalle.
Boston is a market that has benefitted greatly from favorable trends in demographics and exposure to growth sectors. According to our Research Manager Lori Mabardi: “Boston’s downtown submarkets appear to be entering a new chapter in each of their respective history books,” said Jones Lang LaSalle Research Manager Lori Mabardi. The Financial District has seen positive momentum in the low-rise portion, as well as a transformation into a true work-play-live submarket.
“The Seaport District is becoming home to a number of build-to-suit projects, and the Back Bay is achieving pre-recession rents in its premier spaces. Even fringe submarkets downtown are seeing strong absorption. The outlook is bright for Boston given its proven ability to react to secular trends in urbanization, its highly skilled workforce and its diverse economic base.”
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