CBRE/NE Cliffnotes: 3Q16 Downtown Boston Office Market

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Short on time? Here are the highlights of our third quarter Downtown Boston marketview. To request the full report, fill out the form at the bottom of this post.

The Downtown Boston Office market sustained consistent activity through the summer, with overall market conditions continuing to put Boston in the top-performing markets across the country.

Overall Class B rents continue to reach historical highs, ending the quarter at $45.51 per sq. ft, as companies are using real estate to impact culture change more than ever.

The modernized amenity offerings that have been created in Class A buildings in order to compete with creative Class B space have now become the norm. Will we start to see Class B assets creating similar amenities to maintain competitiveness?

In the CBD, traditional professional services firms continue to shrink office footprints to increase efficiency. Availability increased by 10 basis points (bps) while vacancy increased by 30 bps, ending Q3 2016 at 7.7%.

Boston Properties delivered 888 Boylston Street, the newest high-rise building to the Back Bay submarket since 2001. Setting a new benchmark in sustainable buildings, the project was 77% pre-leased upon delivery.

The Seaport continues to attract out-of-market companies. Red Hat announced a 40,000 sq. ft. urban office at 300 A Street. America’s Test Kitchen leased 52,000 sq. ft. at the IDB at 21-25 Drydock Avenue.

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To request the full report, please submit this form:

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