Greater Boston Market
MarketView
Q3 2013
CBRE Global Research and Consulting
BOSTON OFFICE AVAILABILITY
15.3%
CAMBRIDGE OFFICE AVAILABILITY
9.9%
SUBURBAN OFFICE AVAILABILITY
20.5%
SUBURBAN INDUSTRIAL AVAILABILITY
19.4%
*Arrows indicate change from previous quarter.
 
MarketView Summary
 

The Downtown Boston Office market kicked off the second half of 2013 with mixed signals. Despite ending the quarter with 374,115 square feet of negative absorption, deal activity remained strong across all submarkets, driven by small to midsize technology requirements. The overall economy remains strong; companies continue to hire and several large companies consolidated their footprints without job loss.

Large technology tenants remained active in the Cambridge Office market in the third quarter, as the market posted a respectable 62,500 square feet of positive absorption and, after a brief bump downwards, vacancy has risen back above the 6% mark to 6.5%. Lab activity continues to be healthy with the expansion of existing Cambridge tenants pacing the third quarter of 2013. The Cambridge Lab market posted 72,800 square feet of positive absorption. 

Following three strong quarters of growth, the Suburban Office market was relatively flat in the third quarter with approximately 83,000 square feet of negative absorption. Despite this, 2013 year-to-date absorption in the Suburban Office market still remains at a nine-year high, with approximately 794,000 square feet absorbed. Total vacancy in suburbs now sits at 16.3%; this represents an increase of 60 basis points quarter-over-quarter.

Demand for industrial space in Greater Boston continued to strengthen in the third quarter of 2013. Completed deals led to 685,204 square feet of positive absorption—the twelfth consecutive quarter of positive traction. Overall availability decreased by 30 basis points quarter-over-quarter to 19.4%, the eleventh consecutive quarter of decreasing vacancy in the Greater Boston Industrial market.

Small to midsize tenant demand remains strong across all markets and as real estate decisions are finalized, the Greater Boston market is positioned for continued strength as 2013 comes to a close.

 

 






Suzanne Duca
+1 617 912 7041
suzanne.duca@cbre-ne.com
 

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© 2014 CBRE Statistics contained herein may represent a different data set than that used to generate National Vacancy and Availability Index statistics published by CBRE Corporate Communications or CBRE's research and econometric forecasting unit, CBRE Econometric Advisors. Information herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the market. This information is designed exclusively for use by CBRE clients, and cannot be reproduced without prior written permission of CBRE.

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