Demand for office space in the Boston Metro area isn’t slowing down, according to a recent article in the Boston Business Journal. So far in 2015, 1.2 million square feet of office space has been absorbed in the Boston Metro area, putting the vacancy rate at 14.1%.
Top locations and buildings are commanding a premium. High-rise office space is renting for more than $90 per square foot. Class B office space is also seeing a rise in average rent, reaching $45 per square foot and up.
As always, location plays a significant role in rental costs. The Financial district has averaged a 21% increase in rental rates from a year ago. Office rents in the South Station region have increased by 20%. As a whole, average office rents increased by 5% or more in the majority of Boston’s submarkets. Boston’s suburban office locations have seen rents increase by an average of 4%.
Nationally, improved demand for office space has sponsored higher rental rates. A recent industry study of 80 metropolitan areas shows that office rents are tracking higher in 59 of them. Boston is squarely in the top 10 strongest markets for office space, and consistently places among the highest-demand locations in the country.
If you are searching for office space in the Boston Metro area, there are ample choices worth your consideration! When you are ready to begin, expand, or relocate your business, work with an experienced commercial real estate broker who understands the market.
Whether you are thinking of buying or leasing Boston Metro commercial real estate, we can help you find the ideal property. Please contact us today for expert guidance!