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LEASING DECLINES
Following a strong fourth quarter of activity, with 4.0 million square feet (msf) leased – quarterly activity inched down to 2.6 msf. Tenants have leased 11.6 msf in the four most recent quarters, 29.5% below the long-term market average of 16.4 msf.
AVAILABILITY RATES PUSH LOWER
The market's overall availability rate decreased by 50 basis points from 12.7% to 12.2%. The Class A availability rate fell by 60 basis points to 13.2%.
RENT RISES
The average asking rent for the entire region increased by 0.7% to $32.38. The Class A asking rent was essentially flat, inching down by 0.4% to $40.33.
SALES DOWN SHARPLY
As of March 2018, office sales volume in Boston totaled $1.9 billion in the last six months, down sharply compared to the $4.9 billion sold in the previous six months.
"Boston's economy and office market has taken a different route in this cycle, deviating from the weak population and job growth displayed in many older Northeast and Midwest metros - and locally during prior cycles. This time has truly been different for Boston. The willingness of many companies to pay top dollar for Boston's expertise in a wide variety of high-tech sectors has been a game-changer."
Steve Woodworth, Managing Director