As part of our Q3 market research efforts, the JLL Research team recently surveyed a wide range of companies in Greater Boston on their office space plans. Thirty-seven percent of those firms that responded told us that they expect to expand their occupancy in the near future.
These expectations are in line with an increase in office space demand being experienced throughout most of Greater Boston. “I think that’s pretty amazing,” New England Research Director Lori Mabardi told The Real Reporter. “That means that when these companies have completed their searches, they will have filled two million square feet more than is being occupied right now. That’s a good sign for the market.”
According to Research, the number of office jobs in the region has hit pre-recession levels. JLL’s Q3 report indicates that most markets are now experiencing landlord-friendly conditions. “The urbanization trend is very strong,” Lori explained. “It seems if a company can afford to, they are going to move closer to the city. That is a problem for the markets farther out.”
The tone of our latest analysis is that of a rising tide. We project that landlords will see favorable conditions in East Cambridge, the Financial District and Seaport through 2016. The Back Bay should perform well through next year, with several lease expirations on the horizon for 2015 and 2016. Lori says that rents are at a tipping point. “You could see rents jump very quickly. Overall it’s very positive going forward.”