BOSTON–The Greater Boston office market ended 2019 on solid footing, with positive momentum experienced throughout the metro area, according to a report by NKF.
The CBD posted a record-breaking 1.9 million square feet of net absorption during the year, while Akamai’s build-to-suit in Kendall Square pushed Cambridge well into the black. Overall vacancies ended the year at a cyclical low of 11.5%, according to the report.
While leasing velocity waned during the fourth quarter, market conditions remain positive heading into the new year. Tenants are facing few options in Boston and Cambridge, and the scarcity of new supply continues to drive swift increases in lease rates.
The development pipeline is swelling with new speculative projects, but it is unclear how much of this proposed space will materialize. Greater Boston’s near-term outlook is encouraging, but growing concerns over macro headwinds, particularly the 2020 presidential election, could curtail overall business growth.
Here are other highlights from the NKF report: