From Julia Georgules
New England Research Director
It was an exciting third quarter in the Greater Boston office market with some big surprises and continued enthusiasm for the strength of the local economy. With big relocations like Alexion and PTC making a splash in the Seaport and news of organic expansions from companies like WeWork, Facebook and many others, momentum in most of the market is at a fever pitch. As a result, we expect to see landlords responding with increasing rental rates as large blocks remain in short supply and development activity muted.
Total vacancy remained flat overall at 13.7%, but is expected to inch downward in the coming quarters as new entrants and expanding tenants take occupancy of new leases. Rents meanwhile increased by 2.4% to $36.95 per square foot across the region. In Cambridge, total vacancy is at 7.2% with rents at $63.77. In comparison, Boston sits at 9.0% vacancy with average asking rents of $57.02, while the suburbs remain more available and more affordable, with 17.8% vacancy and $25.24 average asking rents.