Cambridge Bucks the Trend

The Greater Boston office vacancy rate rose to 14.5 percent at the end of first quarter of this year, registering a negative growth for the fifth consecutive quarter, according to a report released by the Boston office of Lincoln Property Company.

The Cambridge office market, however, bucked the trend with a decline in vacancy rate to 10.4 percent from 10.8 percent at the end of fourth quarter of 2009, and an increase in asking rents during the first quarter of this year, added the report, which tracked 164.24 million square feet of office space across Greater Boston, including Boston, Cambridge, Suburbs and Interstate-495 markets.

Greater Boston direct office vacancy rate rose to 14.5 percent at the end of this quarter as compared with 11.7 percent at the end of the first quarter of 2009. With an additional 5.23 million square feet of sublease office space available, total current office availability (direct and sublease) is 20.5 percent as compared with 19.2 percent a year ago.

With the increase in direct vacancy, Greater Boston office market recorded 364,300 square feet of negative absorption in the first quarter of 2010, totaling to approximately 6 million square feet of negative absorption since the first quarter of 2009. On a positive note, Cambridge market’s office vacancy, a submarket benefiting from the 2.1 percent year-over-year growth in health and education employment in Massachusetts, fell to 10.4 percent, with an asking rental rate increase to $36.15 per square foot from $35.54 a quarter ago...

Full article from Citybizlist Boston available here: bostonrealestate.citybizlist.com/YourCityBizNews/detail.aspx

The Boston Realty Advisors Commercial Brokerage team has a very unique knowledge and expertise in the Boston Office Market. If your firm currently occupies space or is looking to occupy space in the Greater Boston Area, please contact one of our Cambridge Office Space tenant representation specialists here.