Companies continue to look for opportunities to move and expand into Boston. Here are some highlights on the current office market with data from CoStar’s First Quarter 2018 Boston Office Market Report:
Boston Office Rent Rates
Due to high demand, downtown Boston continues to command higher rent rates than the suburban markets. In Q1 2018, the average quoted asking rent in Boston’s central business district was $50.07 per square foot, versus $22.02 per square foot in the suburbs.
Office Space Absorbed Downtown, While Suburban Availability Increased
In Q1 2018, downtown Boston saw net positive absorption of 455,952 SF – meaning, 455,952 SF more office space was leased than became available. The suburban markets experienced the opposite, as they saw net negative absorption of 577,088 SF in Q1 2018. The vacancy rate in downtown Boston is down to 5.7%, while the suburban markets saw their vacancy rate increase to 8.5%.
Boston Office Vacancy Rates by Class
Class C office space continues to experience the lowest vacancy rate (3.6% in Q1 2018), as it has since the early 2000s. In Q1 2018, the vacancy rates at Class A and B space were 9.3% and 8.6%, respectively.