The region’s office market continued its upward push with rents climbing while vacancy continues to decline.
A Boston Real Estate Times article includes the following highlights to express the market direction:
- Market-wide vacancy averaged 12.2 percent for 2015, the lowest annual average since 2002. Vacancy for the quarter remained steady from third quarter at 12.1 percent.
- Class A asking lease rates topped $42 per square foot for the first time since 2002, reaching $42.06 in fourth quarter, 3.9 percent higher than first-quarter 2015.
- Boston’s Central Business District had 502,000 square feet of absorption in fourth quarter and totaled 1.58 million square feet for the year, the highest annual total since 2006.
- Vacancy in Boston’s Seaport District dropped to 8.3 percent, its lowest level since 2000, when inventory was 6 million square feet smaller than today.
- Cambridge closed the quarter at a remarkable 2.7 percent vacancy, its lowest mark on record.
- There was 314,000 square feet of positive absorption in the Route 128 submarkets and 328,000 square feet in the Interstate 495 submarkets.