BOSTON– Vacancy in Greater Boston’s commercial real estate office market edged up 0.5% to 15.5% since last quarter and average asking lease rates dropped by $0.24 to $35.54, according to a new research publication by Richards Barry Joyce & Partners: officeSTATus – Winter 2010. 

Additionally, during the closing quarter of 2009, Greater Boston’s office market experienced 421,000 square feet of negative absorption.  While Class A asking lease rates dipped it is notable that the rate of decrease has deteriorated significantly.  This quarter’s decrease of 0.7% in asking lease rates compares to a 3.4% average decrease during the preceding four quarters.  In certain bellwether areas – the Financial District, East Cambridge and Waltham – lease rate declines have materially slowed or halted.

This quarter’s “Market Interesting” section delivers a significant finding.  During the current economic slowdown, negative news has dominated the commercial real estate market, with a major focus on decreasing real estate values and lease rates.  However, many tenants with 3-7 year leases expiring now may find themselves looking at rents that are higher than when they signed their current agreement.

“Although the findings don’t show a turnaround in the commercial real estate market, it’s good to see the slowdown in the rate of decline in the asking lease rates,” said Brendan Carroll, vice president of research, Richards Barry Joyce & Partners.  “This is positive news that gives us some level of optimism as we head into 2010.”