Greater Boston Office Market Posts Strongest Quarter In Five Years
BOSTON — The Greater Boston office market has closed its strongest quarter since 2007, according to a new research publication from commercial real estate brokerage firm Richards Barry Joyce & Partners.
According to the firm's "officeSTATus — Fall 2012" report, market-wide vacancy dropped to 14.9 percent from 15.5 percent on 1.1 million square feet of positive absorption, the highest absorption total since mid-2007. Over the past ten quarters, four million square feet of office space has been absorbed across Greater Boston.
"What's pleasing to see is that the strong quarter wasn't held to a specific submarket, it was witnessed in numerous regions throughout the metro area," said Brendan Carroll, senior vice president of research, Richards Barry Joyce & Partners. "Leading the way were the Route 128 submarkets, which enjoyed demand levels not seen in more than a decade. What bears watching now is the construction pipeline, which exploded in the last few quarters."
In the past five quarters, the amount of office space under construction has grown from 200,000 square feet to 2.3 million square feet. Notably, 95% of the space under construction is already preleased, which compares with a 57 percent historical average. The development is balanced throughout nine sites in Boston's Back Bay and Seaport District, Cambridge and the suburbs.