From Lisa Strope
New England Research Manager
Our impressive momentum to end 2015 already seems to be continuing early in 2016. Strong touring activity combined with the buzz from GE’s announcement in January that it will be bringing its headquarters and 800 new jobs to the Seaport District helped to kick start the pace of activity.
Boston’s diverse economic base was reflected in Q1 office leasing activity, as no one sector accounted for more than 25% of the quarter’s leases.
Greater Boston direct average asking rents continued to reach above 10-year highs this quarter at $33.77 per square foot, a 6% increase over the same time last year. Total vacancy meanwhile once again hovered near record lows at 13.9%.
The market as a whole reported its fifth straight quarter of positive net absorption. With nearly 50% of the 5.8 million square feet of projects under construction preleased and vacancy rates near historic lows, tenants with future growth or relocation plans may be challenged by limited availabilities for value options.