Press Release

CBRE: Boston Office Market Rents Continue to Climb Despite Slower Growth

2020 一月 15

5.1 million sq. ft. of new construction underway

CBRE today released its Boston Office MarketView for the fourth quarter of 2019.

In the Boston office market, asking rents reached $67.41 per sq. ft., making the year-over-year growth almost 10%. The Boston office market saw 113,000 sq. ft. of positive absorption during the quarter, bringing the yearly total to more than 1.9 million sq. ft. Vacancy continued to decline, dropping 20 basis points to 6.7%. Availability increased to 13.7% a result of new supply being added to the market.

There is currently 5.1 million sq. ft. of new construction underway, with almost 4 million sq. ft. set to be delivered between 2021 and 2023 with another 5 million sq. ft. shovel ready or in the planning stages.

“Until new construction is delivered in the next two years, we expect Boston office rents to continue to rise as supply is tight as there are very limited options for large requirements,” said Suzanne Duca, Director of Research for CBRE New England.

Central Business District: The CBD had several large blocks become available in the fourth quarter, posting 371,000 sq. ft. of negative absorption. Class A rents continued to increase at a steady clip, rising more than $2.00 per sq. ft. to $76.56 per sq. ft., a new high watermark.

Back Bay: Asking rents in the Back Bay continued to climb in the fourth quarter, hitting $71.28 per sq. ft., a new high for the submarket. This represents 8% growth in the last 12 months, and a nominal jump quarter-over-quarter. Class A rents continue to rise, reaching a new high at $77.09 per sq. ft., a 10% growth in the past year. Vacancy rose slightly to 3.2% as leasing activity was nominal and several spaces were returned to the market.

Seaport: The Seaport had a particularly strong second quarter with 378,000 sq. ft. of positive absorption. Asking rents increased to $68.17, up more than 16% in the last two years.

The full Q4 Boston Office MarketView can be downloaded here.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.