by Suzanne Duca
Our quarterly market reports were released this week for the fourth quarter of 2013. Click the headers below to download each MarketView.
Smaller real estate footprints continued to be the trend, however in most cases this was a result of workplace innovation rather than decreasing headcount. The Boston economy remains resilient, as the unemployment rate has dropped by 10 basis points to 7.1% as of November 2013, and the education and healthcare sectors continue to boom, accounting for 36% of the workforce in Boston.
Despite slight negative absorption of 47,000 square feet in the fourth quarter, the Cambridge Office market ended 2013 with 155,000 square feet of positive absorption. Further indication of a key Cambridge trend, four of the eight biggest office deals involved tenants in the pharmaceutical and biotech industries who either expanded existing operations or opened a business development office. The Cambridge Lab market fundamentals in the fourth quarter provided relief for tenants limited by the historical lack of supply of lab space.
Suburban Boston Office:
The Suburban Office market finished 2013 strong, with 426,000 square feet of positive absorption in the fourth quarter. Significant positive absorption of 1.3 million square feet in 2013, coupled with the continually growing trend of new construction and strong fundamentals, suggest that the Suburban Office market is still in growth mode.
Suburban Boston Industrial:
Demand for industrial space in Greater Boston continued to strengthen through the end of 2013, with decreases in overall vacancy and availability, and an increase in average asking rates. Completed deals led to almost 1.2 million square feet of positive absorption—the thirteenth consecutive quarter of positive traction.