Is Boston office space getting too expensive with vacancy rates just above 8 percent? Class A Boston assets are trading nearly double pre-recession levels while suburban comparable assets are still trading 23 percent below the pre-recession levels.
According to a post from Banker&Tradesman, “with fewer Boston trophy properties in play this year, investors may bid up demand in top-tier suburban markets…Properties in suburban core markets such as Route 128, Route 9 and Watertown are selling for just 21 percent above the 2006-2007 peak. Properties in all other Boston suburban markets are selling for 23 percent below the peak.”
Additional details are available on Banker and Tradesman.
60 Wells Avenue in Newton
Is there a mass exodus from the city? Well, no. Companies are continuing to flock to markets that benefit their customers, employees, and work atmosphere. If office locations were solely based on price then we would see the tweener markets benefit. As we know, there are many contributing factors; in some cases public transportation is the driver, for others it could be the think tank of Kendall Square. Vacancy rates in the city and surrounding office markets have all benefited from the stronger economy.
A study discussed in the Boston Globe, notes “Waltham is the hottest office market in the state outside of Boston and Cambridge, leading a surge in corporate real estate activity along the Route 128 corridor…but Burlington and Newton are not too far behind.”
Jump over to BostonGlobe.com to read more.