by Suzanne Duca, Director of Research
Boston Office (click to download)
Despite a record number of big deals in 2013, the Downtown Office market was able to eclipse last year’s absorption pace and finish the first half of 2014 with over 740,000 sq. ft. of positive absorption. Creative tenants fueled office demand in the CBD, which posted almost 550,000 sq. ft. of positive absorption. Class A availability in the CBD dropped to 18%, a decline of almost 200 basis points since year-end 2013. Class B availability has reached the lowest point since 2001, now sitting at 10.6%.
Cambridge Office/Lab (click to download)
The Cambridge Office market was robust this quarter and, with fundamentals strengthening, large tech titans began to make their presence felt throughout East Cambridge. Start-up and new-economy tenant activity also flourished during 2Q14, with a number of early-stage companies planting a flag or expanding. The lab market continued its positive momentum in 2Q14 and experienced 160,000 sq. ft. of positive absorption for the quarter.
Suburban Boston Office (click to download)
Strong demand from both organic growth and out-of-market tenants helped offset several large givebacks leading the Suburban Office market to a relatively flat second quarter, posting 73,000 sq. ft. of positive absorption. The Gutierrez Company broke ground on a new 100,000 sq. ft., speculative office building at 4 Burlington Woods.
Suburban Boston Industrial (click to download)
The Greater Boston Industrial market continues to tighten, posting 374,000 sq. ft. of positive absorption in 2Q14 with availability declining 40 basis points quarter-over-quarter. As the overall market continues to tighten, average asking rents continue to rise, ending at $6.83 NNN per sq. ft. in 2Q14 and reaching the highest point since the beginning of 2009.