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Boston Market Reports

Boston Office Market

Average Asking Rent (Price/SF) $35.90
Vacancy Rate (%) 11.8%
Net Absorption (SF) 519,087

A second consecutive quarter of strong net absorption pushed Greater Boston's office net absorption to more than 1.0 million square feet in 2018. Boston's Central Business District accounted for the majority of the overall market's growth during the year with 1.0 million square feet of net absorption. The suburbs ended the year slightly in the red, posting negative absorption of 163,000 square feet after taking a big hit to start the year when Reebok's former headquarters was put on the market. Cambridge, despite its already extremely low vacancy, recorded more net absorption that pushed its vacancy to an unprecedented 2.4% to close the year. Asking rents remain highest in Cambridge but have seen a sizable jump in the CBD as of late owing to strong tenant demand, tightening availability and increasingly concentrated, disciplined and motivated ownership.

Boston Industrial Market

Average Asking Rent (Price/SF) $9.03
Vacancy Rate (%) 6.2%
Net Absorption (SF) 332,800

Boston's industrial market witnessed an extremely active quarter, as both leasing and capital markets transaction volume rounded out the year with their strongest performance of 2018. Three out of Boston's four industrial submarkets posted strong positive absorption; the Urban submarket was the only exception. This was primarily due to the former Necco factory, which contributed more than 800,000 square feet of new vacancy. In the North and West submarkets, vacancies remain below 5.5%, down from 6.9% and 7.4%, respectively, from a year earlier. By subtype, R&D/flex had the greatest absorption, with strong demand also fueling rent growth exceeding 8.0% year-over-year to $12.68/SF. Warehouse/distribution again had the lowest vacancy rate, at 5.9%, weighing down the market average rate to 6.2%. As the market continues to tighten, the environment for new tenants and those looking to expand remains increasingly competitive. New construction and repositioning of assets remains the only release valve for the unrelenting demand that is pulling vacancies down and driving up rents.

Boston Office Market Report
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Boston Industrial Market Report
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Boston Life Sciences Market Report
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