Greater Boston office market carries momentum
All four major markets, Boston, Cambridge, Route 128, and Interstate 495, continue to function robustly, according to Transwestern.
Throughout the year, the 186-million-square-foot Boston office market experienced about 1 million square feet of positive absorption, with positive absorption seen in three of the four quarters. Most recently, during the fourth quarter 2017, the market absorbed 183,000 square feet, as vacancy fell 0.1 percentage points to a near record low of 11.9 percent. While there were approximately1.2 million-square-feet of office space delivered in 2017, there is an additional 3.4 million square feet expected over the next few years.
Boston, Cambridge, and Route 128 all posted positive absorption in the fourth quarter of 2017, while Interstate 495 had one of its strongest years to date, with 714,000 square feet of office space absorbed in the market. Average asking rents continue to rise across the board, with the most expensive product in Cambridge, currently $68.97 per square foot on average, and the most affordable space available along Interstate 495, currently $21.95 per square foot on average.
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