Colliers Cites Office Market Gains
The office markets in Worcester and the Interstate 495 area made gains in the fourth quarter of 2012, although the vacancy rate ranged between 20 and 25 percent, according to a report released Monday.
The report by Colliers International of Boston cited gains throughout Eastern Massachusetts and “generally positive” results in the suburban Boston markets for office and research and development space. Colliers said annual “absorption,” or the gains in the amount of occupied space, surpassed 2010 and 2011 levels. However, there was increased space available in the 495 West area as well as in Worcester. The report said about 50,000 square feet of additional office space became available in Worcester, while an extra 276,000 square feet opened up in 495 West.
But there were gains in the 495 North and 495 South zones.
Colliers cited the following:
- Energy, technology and life science firms still dominate in the suburbs. Although the median suburban requirement is 16,000 square feet, there are some sizeable tenants in the market with potential requirements over the next 12 to 24 months.
- A handful of sizeable leases were executed in the fourth quarter. However, a majority of the recent transactions were less than 30,000 square feet, with computer software, telecom and biotech companies leading the way.
- With more confidence in the local economy, businesses have been increasingly willing to make deals. Relocations and expansions are not only bolstering demand for office space, but also increasing the office and R&D supply in the suburbs.
WBJ Web Partners
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