Closing the book on a successful 2015

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strope_blogFrom Lisa Strope
New England Research Manager

 

 

A great 2015 was made even better in the final quarter as Greater Boston finished the year on a high note with direct average asking rents topping the previous peak at $34.04 and total vacancy rate dipping to 13.8 percent, its lowest point since 2007.

The year ended with a flurry of leasing activity closing nearly 3.5 million square feet in transactions in the fourth quarter, up nearly 15 percent quarter-over-quarter and triple the volume of the snowy first quarter. Boston’s Downtown and Rt. 128/Mass Pike submarkets were the most active, each closing nearly 1 million square feet in leases over 20,000 square feet.

Greater Boston direct average asking rents and total vacancy rate (image)

Greater Boston direct average asking rents and total vacancy rate

To top it off, Boston’s job growth continued to outperform both the state and the nation, driven largely by knowledge-intensive industries such as high-tech and life sciences. Forecasts through 2020 remain optimistic with steady growth expected to continue for the next several years, keeping the regional unemployment rate below 5% through 2020.

Q4 leasing transactions by submarket (reflects leases over 20,000 sf)

Q4 leasing transactions by submarket (reflects leases over 20,000 sf)

For more information download our Q4 Office Insights Report, and feel free to contact me with any questions.

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