by Suzanne Duca, Director of Research
Boston Office (click to download):
The Downtown Boston Office market continued to tighten during the third quarter, experiencing 847,000 sq. ft. of positive absorption. This brings downtown Boston’s 2014 year-to-date absorption to over 1,500,000 sq. ft. Boston’s central market especially benefited from the tightening East Cambridge market, with two tenants over 100,000 sq. ft. announcing plans to move across the river.
Cambridge Office/Lab (click to download):
The Cambridge Office market continues to be one of the tightest submarkets in the country, despite what the overall 3Q 2014 statistics might say. With several large givebacks of space from tenants relocating to downtown Boston, the 388,000 sq. ft. of negative absorption recorded this quarter will serve as a needed relief valve to the office market. The Cambridge Lab market saw its third consecutive quarter of positive absorption, posting 49,000 sq. ft. of positive growth driven by a handful of newly public biotech companies.
Suburban Boston Office (click to download):
The Suburban Boston Office market was driven by robust demand and organic growth from small, mid and large users in Q3 2014, posting almost 550,000 sq. ft. of positive absorption. New leases outpaced renewal activity with six tenants finalizing deals totaling more than 100,000 sq. ft. each in Q3 2014. As a result, vacancy decreased by 30 basis points quarter-over-quarter to 17.0%.
Suburban Boston Industrial (click to download):
The Greater Boston Industrial market saw 751,000 sq. ft. of positive absorption in 3Q 2014. This pushed vacancy down 90 basis points quarter-over-quarter to 14.6%, its lowest point since the fourth quarter of 2007. The first new industrial construction in years is underway as The Maggiore Companies is building a 200,000 sq. ft. warehouse at Myles Standish Industrial Park in Taunton.