With the economy growing at its fastest pace in the current cycle, US employers across industries are adding jobs and expanding their real estate footprint. Here in the Boston area, as the market remains competitive, asking rents have increased significantly year-over-year. In fact, direct average rents increased more than 5.0 percent year-over-year in eight out of 12 of Boston’s submarkets.
Several large leases have led to scarce availability of large blocks in Class A buildings. In the Boston CBD, for instance, only 11 Class A blocks over 50,000 square feet are available in existing buildings. And new deliveries are in hot demand too. Of the nearly 2.4 million square feet expected to be delivered this year, 60 percent is pre-leased.
As Boston employers continue their hunt for talent, the impact is being felt on the office market as well. In this quarter alone, organic growth from local tenants led to over 1 million square feet of new leasing activity.
Download JLL’s Q3 Boston Office Insight for more on what’s happening locally, or the Q3 US Office Outlook for additional perspectives across the country. Please don’t hesitate to contact me for additional information.