BOSTON– Richards Barry Joyce & Partners has released its third quarter report on Greater Boston’s commercial real estate office market.  According to officeSTATus – Fall 2009, the quarter was the fourth consecutive period of increasing vacancy rates in Greater Boston. 

Vacancy rates increased 0.5% to 15.0% across Greater Boston, with the market taking on 546,000 square feet of negative absorption.  Notably, premium properties and locations have accounted for almost all net negative absorption during the last four quarters. 

Asking lease rates for Class A space were down, dropping by $2.17 to $35.78 per square foot.  This 5.7% decrease in asking lease rates is the largest such quarterly drop in six years.  Meanwhile, the figure for total square feet available for sublease has increased by 61% in six quarters. 

“Several important indicators appear to potentially be reaching a trough in this economic slowdown,” said Brendan Carroll, vice president of research, RBJ.  “Commercial real estate, however, historically has proven to lag other economic indicators, when both entering and exiting a downturn.  So it should come as no surprise that commercial real estate is still struggling towards the light at the end of the tunnel.”

officeSTATus is written for commercial real estate decision-makers and market watchers.  While filled with in-depth research and insightful analysis, the report is designed to be quickly read and easily understood.  The report begins with an executive summary that provides highlights of the quarter, followed by the “Economy & Real Estate” section, which places the quarter’s data into a broader economic context.  Each major submarket – Boston CBD, Cambridge, Route 128 and Route I-495 – each have a page devoted to specific findings for that area.  The pertinent market statistics (vacancy, market size, absorption and availability) comprise a chart on the final page.  The chart also includes statistics for laboratory space, creating a single, invaluable source for market data.

The “Market Interesting” section takes an engaging look at a unique aspect of the commercial real estate market.  This quarter, the section looks at certain economic indicators and how long commercial real estate lagged them exiting the “tech bust” downturn.  The lag time provides a way to determine when commercial real estate may expect to recover from this downturn.