The Boston office market needs more towers to accommodate the forecasted future growth and tenant demands of strong infrastructure with abundant amenities. Tower’s no longer solely focus on traditional tenants, now prospective tenants range technology firms to ecommerce.
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Cathy Thompson, Executive vp at DTZ, discussed in an interview with the BBJ the notion that Boston is still very much a landlord’s market:
“In the Back Bay and Seaport submarkets, vacancies in the Class A towers are in the low single digits. Some the spaces in the upper floors in the Back Bay towers are commanding rents in the $80s (per square foot). In the Seaport, the top rents are in the low $60s in the new spaces. There’s a flight to quality, an upgrading of space. Landlords are taking advantage of the fact that there isn’t much high quality space available right now for blocks of space above 75,000 square feet.”
The full interview with Ms. Thompson is available on the Boston Business Journal’s website.