by Suzanne Duca, Director of Research
Boston Office (click to download)
The Downtown Boston Office market kicked off 2014 with modest leasing activity despite experiencing relatively flat absorption of just under 60,000 sq. ft. The CBD continued to gain popularity with new economy tenants overflowing from the Seaport and East Cambridge. As the demand for creative space continues to grow beyond technology sector tenants, the gap between Class A high-rise and low-rise vacancy has been narrowing on a percentage basis.
Cambridge Office/Lab (click to download)
The Cambridge Office market experienced 44,000 sq. ft. of positive absorption in the first quarter. Due to limited availability, the Cambridge Office market managed only moderate leasing activity in the first quarter of 2014 with a mix of both renewals and expansions. The lab market was driven by the organic growth of local biotech companies and the expansion of major pharmaceutical companies throughout 2013, a trend that has only continued into the first quarter of 2014.
Suburban Boston Office (click to download)
Following a strong 2013, the Suburban Boston Office market began the New Year with 427,000 sq. ft. of positive absorption in the first quarter. A number of sizable transactions north of 50,000 sq. ft. were finalized in the first quarter, with several users expanding their footprints while the depth of small to mid-size requirements in the market has shrunk.
Suburban Boston Industrial (click to download)
Demand for industrial space in Greater Boston remains strong in the New Year, as completed deals led to 492,000 sq. ft. of positive absorption in the first quarter of 2014, the fourteenth consecutive quarter of positive traction. Affordable Interior Systems (AIS) executed the largest lease of the quarter, taking all 589,000 sq. ft. at 25 Tucker Drive in Leominster.