0 Older Office Buildings in Boston Yielding Higher Rent Prices

office space at 10 Post office square in Boston

Credit: Boston Globe

It is true, Class B office rents are on par with the low rise space in class a towers.

From the Boston Globe:

What they lack in modern conveniences, the Class B buildings make up in character: Many have exposed bricks and beams or ornate stairways and other finishings that have caught the eye of young technology companies and other startups looking for more authentic digs.

Vacancy rates for those buildings have been consistently below those of the more modern, taller downtown towers, something unheard of in previous decades, according to JLL, a Chicago commercial real estate firm with offices in Boston.

Rents at Class B buildings in downtown Boston have increased about 32 percent over the past three years, compared with 18 percent for space in Class A towers, according to Cushman & Wakefield.

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0 Office Space Super Bowl

77 North Washington St in Boston

Credit: rejournals.com

Office Vacancy and the Super bowl, the city with the highest vacancy rate wins.

REjournals compared Boston and Seattle’s office markets, citing a correlation between office vacancies and Super Bowl victories: “according to JLL, NFL teams based in cities with higher office vacancy rates have won the Lombardi Trophy 60 percent of the time in the past 15 seasons, including seven straight years from 2000 through 2006…This year, Boston’s office vacancy rate is 14.7 percent while Seattle’s is 10.7 percent. Based on this statistic, the odds favor New England.”

You can read the complete analysis on rejournals.com.

0 Boston Office Vacancies Reach 14-year low

office building graphic

Credit: wbjournal

The Boston Office market continues to price upward while pushing vacancies to levels not seen since 2001.

WBjournal reported on a study conducted by Transwestern, a commercial real estate management firm, citing “in the fourth quarter, the region’s office market closed the year at a 12.8-percent vacancy rate. For the year, 3.6 million square feet of office space was absorbed, marking the area’s seventh consecutive quarter of positive absorption.”

The WBjournal offers an additional details on Boston’s vacancy rate.

0 Boston Office Rents Stay Among Country’s Highest in 2015

Boston offices

Credit: Boston Business Journal

Boston Office rents are some of the most expensive nationally and expected to continue upward during 2015.  Vacancy in the city has continued downward with value options within the low rise Class A and Class B in the Financial District.

“The vacancy rate in Boston at the end of the fourth quarter was 13.4 percent, the seventh-lowest rate in the country among the roughly 75 markets Reis examined…The national average was 16.7 percent. Average Boston rents rose 0.2 percentage points during the fourth quarter. Most of the cities saw a small decline. Average rent in Boston at the end of the fourth quarter was $32.42 per square foot — fourth highest in the country,” according to stats presented on the Boston Business Journal.

The full BBJ article can be found, here.