Report: Office vacancies hit 14-year low
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Office market vacancies from Boston out to MetroWest closed out 2014 at their lowest level since 2001, according to commercial real estate management firm Transwestern.
In the fourth quarter, the region’s office market closed the year at a 12.8-percent vacancy rate. For the year, 3.6 million square feet of office space was absorbed, marking the area’s seventh consecutive quarter of positive absorption.
The study tracks use of office space westward to Interstate 495, where overall vacancy rates fell to 19.8 percent at the end of the year, while top-tier, Class A properties reached a 14.4 percent rate, the lowest on record, according to Transwestern. Properties built since 1990 are 10.8 percent vacant, compared to 23.3 percent for those built before that year, the company said.
And the 495 micro-market is one of the most active, absorption-wise in Greater Boston, according to Transwestern, growing 6.5 percent in the last year. Large moves include Genzyme into 114,000 square feet in Westborough.
Vacancies in Boston dropped to 9.4 percent, according to Transwestern, with the Seaport District continuing to be the city’s strongest area. The overall region has 3 million square feet of office space under development.
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