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      Blog :: 12-2015

      Q3 2015 Boston Retail Market Update

      Boston's retail market also remained strong in Q3 2015. Vacancy was down to 3.7% at the end of the quarter, compared with 3.9% in Q4 2014. Asking rent rates were also up - at $17.83/SF, up 5.38% from four quarters earlier. (Remember, those averages are across the greater Boston area - in Q3 2015, average quoted rent rates were $90.80/SF in the Back Bay and $110/SF in the Midtown/Downtown Crossing area).

      As the chart above shows, there is not a great deal of new construction retail space scheduled to be delivered in the next year - and much of what is, has already been committed to tenants.

      Sale prices have trended generally up. The chart below is a little deceiving in the sense that it covers so many different areas. However, I wanted to share it because it shows how strong 2015 started for Boston retail (data for the 2nd half of 2015 will be out in the coming weeks).

      Contact Eric Shabshelowitz, our Vice President of Commercial Real Estate, if you have any questions about or need help with Boston retail space.

       

       

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      Q3 2015 Boston Office Market Update

      Boston's office market remained strong in Q3 2015. Overall vacancy in the Boston area decreased to 9.1%, down from 9.2% at the end of Q2 2015 and 9.3% at the end of Q4 2014. Vacancy in Boston's central business district (CBD) was down to 7.6%, compare that with Q4 2014 when vacancy was at 8.3%. Interestingly, the vacancy rate for Class A properties is at 9.9% vs. only 5.2% for Class C properties. Rents are also up - in both Boston's CBD and the suburban markets.

       

      There has been a lot of press about the construction boom in Boston. In the first chart above, showing scheduled deliveries of new construction office space, note that most of it has already been leased. One common question is whether it is just companies moving out of old space into new and so it will create vacancy in their old building. However, that has not yet been the case - more office space continues to get leased than sits on the market (net absorption for Q3 2015 was positive 1,152,407 SF).

      Investment interest in Boston office property also remains strong. Cap rates continue to stay below national averages. Investors are also dominating the market, as only 7% of Boston's office space is owner-occupied.

      Contact Eric Shabshelowitz, our Vice President of Commercial Real Estate, if you have any questions about or need help with Boston office space.

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      Things Are Just Rosey On Newbury Street!

       

      Just like the hot Boston real estate market, the roses are feeling the heat. Cabot's principal, Joseph Palermino, photographed these flowers in front of the Prince Condominium just the other day, in the middle of December! Cabot & Company also has some hot winter specials for rent and for sale so please call us to help you with your real estate needs!

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