BOSTON– Colliers International is releasing its Top Office Market Snapshot Report Q2 2019, which says that Boston remains one of the country’s top office markets.
The report finds that Boston continues to go from strength to strength. Although the heady pace of leasing activity may start to cool, fundamentals remain strong and vacancy continues to fall. Additional highlights include:
- Demand remains strong with half-a-million square feet of net absorption in the second quarter. At the same time, the vacancy rate fell by 60 basis points to 8.3% and average asking rates rose to $60.85 per square foot.
- Second quarter demand centered on the Financial District, which recorded 558,000 square feet of net absorption, driven by two major leases: Bank of America and WeWork.
- Net absorption in the Back Bay in Q2 2019 was stymied by limited supply.
- Is this performance sustainable? Demand is strong but active tenant requirements have likely peaked.