The long-term outlook for the Boston Metro office sector is positive, despite a small uptick in vacancy rates during the second quarter of 2018. Here’s the highlights from Boston Bisnow, along with insights from the Jay Nuss Realty Group, LLC!
Office vacancies increased slightly to 11% from 10.7% during the second quarter of 2018. Negative absorption stood at 22,000 square feet. The Boston Metro currently has more office space available than many of its major-city peers in the U.S.
Local analysts point to Reebok’s move from Canton to the Seaport as a major driver behind the statistical rise in vacancies. Reebok left 680,000 square feet of office space behind in Canton. In the new Seaport location, Reebok will have a much smaller footprint, occupying only about 1/3rd as much space. Therefore, analysts see the small rise in office vacancies as a temporary blip.
Meanwhile, there is plenty of positive commercial real estate news happening in the Boston Metro. Google is in discussions to lease 400,000 square feet in Kendall Square. Wayfair is expanding in the Back Bay, and Amazon’s Seaport expansion is in progress. WeWork continues to expand in the former headquarters of Fidelity.
Forbes has named Boston as one of the “6 Office Markets to Thrive in 2018,” and the predictive article shows every sign of being accurate.
The availability of quality office space will enable more companies to expand operations or relocate to Boston. With this in mind, more developers are building new projects on spec, having witnessed strong absorption rates for the past several years. The consistent demand for Boston Metro office space has analysts predicting rent increases above 6% during 2018.
The Boston Metro offers strategic advantages for virtually any type of business! When you are ready to begin, relocate or expand your business, team up with the Jay Nuss Realty Group, LLC!