July 11, 2007
Office vacancy down, rents up around 495
By Matthew L. Brown
With little office space available around Route 128, occupancy may continue to grow in "the boroughs," and that growth may have staying power, according to Richards Barry Joyce & Partners.
The Boston-based commercial real estate firm released its summer 2007 office market status report recently. It said office landlords have been able to push up rents by between $2 and $5 this quarter.
Office space in the boroughs has strung together six consecutive quarters of positive absorption, RBJ said. However, that area did the same thing before it flopped in 2004.
But RBJ said the boroughs could continue to fill office space, and that office space may remain occupied if space around Route 128 remains scarce.
RBJ said the area around the southern end of I-495 may be the next to see an explosion of office space development. The area currently has only 2.1 million square feet of office space, but there are office developments either in the works, or on the drawing board, RBJ said.
According to RBJ, the Class A office space vacancy rate for the I-495 area decreased by 0.8 percent to 21 percent in the second quarter. Asking rents in the area increased by $1.14 to $21.39 per square foot.
Office vacancy in I-495 West was at 17.3 percent for the quarter, and the higher asking rates for the entire I-495 corridor were driven by I-495 North, where lease rates increased by 22 percent over the last three quarters, RBJ said.
The Boston-based commercial real estate firm released its summer 2007 office market status report recently. It said office landlords have been able to push up rents by between $2 and $5 this quarter.
Office space in the boroughs has strung together six consecutive quarters of positive absorption, RBJ said. However, that area did the same thing before it flopped in 2004.
But RBJ said the boroughs could continue to fill office space, and that office space may remain occupied if space around Route 128 remains scarce.
RBJ said the area around the southern end of I-495 may be the next to see an explosion of office space development. The area currently has only 2.1 million square feet of office space, but there are office developments either in the works, or on the drawing board, RBJ said.
According to RBJ, the Class A office space vacancy rate for the I-495 area decreased by 0.8 percent to 21 percent in the second quarter. Asking rents in the area increased by $1.14 to $21.39 per square foot.
Office vacancy in I-495 West was at 17.3 percent for the quarter, and the higher asking rates for the entire I-495 corridor were driven by I-495 North, where lease rates increased by 22 percent over the last three quarters, RBJ said.
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