116 Huntington Ave. office building in Boston
Rents are up and vacancy is down; this is a good sign for landlords, but not as beneficial for the tenants. Value options still exist in the low rise Class A space and Class B space, particularly within second generation space.
The Boston Business Journal offers some numbers to help explain what started this current trend:
“Over the past year, three million square feet of office space has been absorbed as tenants inked deals in the Financial District, Midtown, North and South Station and Charlestown. Boston’s overall availability rate fell slightly to 15.1 percent from July through September, down from 16.6 percent for the same period one year ago. As availability fell, rents in the Hub’s submarkets swelled by nearly 6 percent to $51.96, up from $49.07 one year ago.”
For more information, read the Boston Business Journal’s article: Market Improving for Landlords