I-495 business corridor office real estate holds strong
Transwestern/RBJ
One Research Drive in Westborough is now 96 percent occupied, reflecting a strong I-495 west market.
Although lacking the high absorption rate seen in Boston, the I-495 business corridor maintained its positive momentum in commercial office space in the second quarter.
The Transwestern Boston Office Market Report found the I-495 corridor had 1,000 square feet of positive absorption, leaving vacancy rates and Class A asking rents unchanged at 21.8 percent and $21.26 per square foot, respectively.
However, with activity heating up in Boston, the market could be in for some better quarters to come, according to the report.
“Despite a flat quarter, as available space in Cambridge disappears and rental rates continue to climb, we expect to see a positive spillover of tenants searching for quality, cost-efficient space,” the report summary stated.
This would be a continuation of the last two years, where I-495 West has seen 824,000 square feet of positive absorption. Additionally, 38 percent of the vacancy throughout I-495 is contained to 15 buildings, which, if removed, drop the market’s vacancy to 15.9 percent from 21.8 percent.
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