0 Boston Office Market Maintains Impressive Growth

Boston real estate Innovation

Credit: JLL

Office rents continue Northward while vacancy works Southward in Boston’s office Market.  We will continue to see rent growth through 2016 as tenants continue to demand more space.

According to Globest, “the strong job market is fueling tenant demand and positive space absorption in Boston and surrounding areas such as Cambridge and the Route 128 markets. The office vacancy rate for Greater Boston ended 2015 at 12.1%, virtually flat as compared to year’s-end 2014. The average vacancy rate for 2015 was 12.2%, the lowest rate since 2002. Class A asking rents in the region rose to $42.06-per-square-foot. Asking rents haven’t been that high since 2002, Transwestern reports.”

You can read the full article on its website.

0 Boston Office Market Trends: 2010-2015

If your company signed an office lease during the Great Recession chances are your rents are looking pretty, pretty, pretty good.

Office space in Boston is growing increasingly more expensive. So much so current asking rents are at some of the highest they have ever been. The top floors of the Prudential building are asking $90 per rentable square foot…$90!

Office trends in Boston and Cambridge

Boston Office Market Trends

The urban leasing team at Boston Realty Advisors wanted to know how much has changed in the last five years across all of Greater Boston’s major neighborhoods: East Cambridge, Seaport, Financial District, Back Bay, North Station. They included image break downs of each market on asking rental rates and vacancy rates for the top tier buildings (Class A) and the middle market buildings (Class B). The facts are astounding!

If your company’s lease is expiring in the next 12-24 months chances are the second fixed expense on your balance sheet next to payroll will be increasing  if you wish to renew. Now is the time to engage your real estate team on how the current market dynamics will impact the company’s short and long terms plans for office space, the company’s bottom line, and how your company uses its current space. Knowing the options, risks, and opportunities in the current real estate climate is the best hedge against a rising market. Its starts with being proactive. Time can be your best leverage but quickly your worst enemy when it is running out.

Robert LeClair is Managing Director and Partner at Boston Realty Advisors having handled hundreds of lease transactions for clients in Greater Boston for over the last 10yrs.

Click here to download the full PDF: Boston Office Market Trends 2010-2015

0 Boston Office Forecast: Meaningful Moves Ahead in Financial Sector

Boston financial district office buildings

Credit: B&T

The Boston office market has big movers that need to make some real estate decisions.  The market continues to tighten and blocks of 100,000 square feet and above are harder to find.

From Banker and Tradesman:

Banks continue to move employees into smaller workspaces, with the industry average now 150 square feet per employee, down from 225 square feet in 2009…many banks are [also] choosing to relocate offices. Only 25 percent of the financial services office deals tracked by JLL in 2014 were lease renewals, while 46 percent were relocations.

That trend is likely to continue in Boston, with three major financial institutions responsible for 33 percent of the total active requirements in the market. But the result likely will be a net decrease in occupied space.

Putnam Investments and Wells Fargo are in the market for 280,000 and 220,000 square feet, respectively, while BNY Mellon is seeking to downsize to 350,000 square feet. And available build-to-suit parcels in the Seaport District provide competition to existing office towers in the Financial District.

0 Tech Sectors Driving Boston Office Market Growth

Tech tenants are driving office demand nationwide with Boston ranking number 7 falling just behind Seattle.  To be classified as a tech talent market, there must be a labor pool of at least 50,000.

Desired Options:

·         Food Options
·         Shopping
·         Wellness Center
·         Outdoor Space
·         Recreation Room
·         Onsite Daycare
·         Bike Storage/Bike Rental
·         Zip Car

Cool office space in Boston

Credit: Forbes

To view some of Boston’s coolest office designs, check out Forbes’ online gallery.

0 Boston Office Market is Positioned for Continued Growth

The Boston office and retail market is expected to continue its upward march.

Boston office market trends

Credit: multihousingnews.com

According to an editorial on MultiHousingNews.com, “developers completed approximately 4.2 million square feet of office space over the last 12 months as compared to merely 1.4 million square feet in the previous year. Around 5.2 million square feet currently under construction in the metro area is expected to come online throughout 2016. According to Marcus & Millichap, approximately 3.2 million square feet of office space is set for completion by the end of 2014—a 1 percent increase from 2013—with new inventory being heavily concentrated in the Boston/Suffolk County and Route 128 North submarkets.”

For a detailed indicator of the Boston office market direction, jump over to the MultiHousingNews website.