Boston Office Space Vacancy Rates and Market Trends
The Boston commercial real estate market is one of the strongest in the nation. Here’s a quick look at the statistics and how Boston compares to other major cities across the country.
Boston Market Area Vacancy Rate
The Boston office space vacancy rate has remained fairly steady from quarter to quarter. It shifted just 0.1% per quarter and 0.2% overall in the last year.
2018 1st Quarter 7.8%
2017 4th Quarter 7.8%
2017 3rd Quarter 7.7%
2017 2nd Quarter 7.6%
Hovering around 7.6% to 7.8%, Boston vacancy rates are considered very low compared to the national average of 11.5%. This figure is even more impressive considering the increase of supply from newly constructed office buildings in the Boston area. Thus, demand increased enough to keep the vacancy rate steady from quarter to quarter.
Lease Rates and Growth
With low vacancy, Boston commercial real estate owners are able to demand higher lease rates for office space in and around the city. In fact, Building Design & Construction Network mentions Boston as the leading market for rent growth. According to their Real Estate Outlook report for the fourth quarter of 2017, Boston office space rates increased 15.1% in the fourth quarter of last year. This is dramatically higher than the next best market, San Francisco, and the national average of 3.4% growth.
What We Can learn from Boston Office Space Vacancy Rates & Market Trends
The statistics say it all… Boston is a hot commercial real estate market and will continue to be in demand for the near future. It is already the home of major companies such as Bose, Staples and Keurig and businesses such as Amazon and Wayfair expanding. With a focus on technology, abundance of fresh new talent from its many local colleges, cultural diversity and availability of modern office spaces in newly constructed or recently renovated buildings, it’s no surprise that it is one of the strongest commercial real estate markets in the nation.
For additional information on the Boston commercial real estate market, local market statistics, and assistance with buying, selling, or leasing commercial real estate in Massachusetts, contact ABG Realty. We service Greater Boston and Eastern Massachusetts and are ready to put our extensive local market knowledge and experience to work for you.