Greater Boston Market
MarketView
Q2 2013
CBRE Global Research and Consulting
BOSTON OFFICE AVAILABILITY
14.1%
CAMBRIDGE OFFICE AVAILABILITY
10.4%
SUBURBAN OFFICE AVAILABILITY
20.4%
SUBURBAN INDUSTRIAL AVAILABILITY
19.7%
MarketView Summary
 

An expanding economy and growing tenant base contributed to improved market fundamentals in the first half of 2013. Overall downtown vacancy fell to 8.1% in the second quarter, the lowest mark in over five years, with the CBD plummeting 400 basis points year-over-year dipping below 10% for the first time since 2009.

Midsize deals have been the driving force in the Cambridge Office market to close out the first half of 2013, as the market posted a respectable 139,000 square feet of positive absorption and, after a brief bump upwards, vacancy has fallen back below the 6% mark to 5.9%. Despite the absence of any blockbuster deals in the first quarter, the Cambridge Office market posted a respectable 107,000 square feet of positive absorption. 

The Suburban Boston Office market absorbed more space in the first half of a year, recording more than 850,000 square feet of positive absorption in 2013, then it has since 2005 when 1.2 million was recorded. Total vacancy in suburbs now sits at just 15.7%; this represents a tightening of 110 basis points year-over-year with vacancy reaching its lowest point since 2002, with the exception of one quarter in 2008.

The Greater Boston Industrial market continued to trend in a positive direction with 811,000 square feet of absorption in the second quarter of 2013, the eleventh consecutive quarter of positive traction. The Metro South submarket led the way with 738,000 square feet of positive absorption, pushing vacancy in the South down 90 basis points quarter-over-quarter.

Midsize tenant demand remains strong across all markets and as real estate decisions are finalized, the Greater Boston market is positioned for continued strength in the last two quarters of the year.



 






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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