February 5, 2020
While a few metrics may differ, major brokerage firms broadly agree that the Boston office market is having one of its best innings on record. JLL noted that the metro area’s 18% year-over-year rent growth is surpassed only by Silicon Valley among top-tier markets, while fourth-quarter net absorption brought vacancy to its lowest level since 2001.
NKF noted that Boston’s CBD posted a record-breaking 1.9 million square feet of net absorption during the year, “while Akamai’s build-to-suit in Kendall Square pushed Cambridge well into the black.” Although leasing velocity waned during Q4, “market conditions remain positive heading into the new year,” according to NKF.
Citing metro area unemployment of 2.6% and laboratory space development outpacing office, Cushman & Wakefield also provided an upbeat assessment. “We expect 2020 to be a year of continued strength in Greater Boston,” the firm says.
Colliers International, meanwhile, predicts a landlord’s market for the next 12 to 24 months, “since the next wave of development is build-to-suit in 2021. That will not relieve the availability problem much.”
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