Robust employment and a healthy economy is driving office space demand in the Boston Metro, according to a recent article in the Boston Business Journal. Steady growth in the overall number of jobs, as well as an increase in higher-wage, office-based jobs, has kept vacancies contained even as new units reach the market.
Looking at the numbers, Boston office space vacancies are currently averaging 13%, materially unchanged from a year ago. Meanwhile, Boston Metro office rent is up by 4.8%, with the current price per square foot running $33.39. Nationally, office rents have averaged an increase of 3.3%.
The commercial real estate market trends in Boston are in line with the rest of the country, with office space demand showing strength nationwide. Overall, office space demand has reached its highest level since 2007. The top 3 metros with the lowest office vacancy rates are New York City, Washington D.C. and San Francisco. Boston ranks #8 among the metros with the lowest office vacancies, thanks to consistent market demand supported by steady business growth.
Projections for future office demand indicate that the commercial real estate market will remain healthy. Industry analysis by Reis, Inc., predicts that gradual job growth will continue during the next 5 years, keeping downward pressure on office vacancies. In Boston, our technology sectors, medical companies and start-ups will seek expanding office space, offsetting vacancies created by new development and by natural attrition in maturing industries.
Ready to begin, expand, or relocate your business? Team up 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!