October 28, 2019
A new report from CBRE ranks East Cambridge as the submarket in the U.S. and Canada with the highest average rent premium at 128%, when compared to the city’s overall office market ($92.62 vs. $40.55 per sq. ft. per year). The firm’s annual Tech-30 report measures the tech industry’s impact on office rents in the 30 leading technology markets in the U.S. and Canada.
The report found that East Cambridge showed a 16.3% rent growth in the past two years with a vacancy rate of just 1%, the lowest of any top submarket in the U.S. and Canada. Net absorption in the submarket came in at 14.8%, ranking second among the top Tech-30 submarkets.
“Boston’s office rents have continued to increase throughout this cycle, driven by new construction pricing, tightening fundamentals, and the continued demand by and expansion of Technology, Advertising, Media and Information companies,” said Kevin Kennedy, senior vice president at CBRE in Boston.
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