April 15, 2008
Office Tenants Seek Out Value Around I-495
By Matthew L. Brown
Communities at the westernmost reaches of Interstate 495 are offering the best office space bargain compared to the Route 128 area in years, according to Boston-based commercial real estate broker Richards Barry Joyce & Partners .
According to RBJ, average lease rates for Class A space around I-495 showed a slight pullback in the first quarter, but that pullback comes after seven consecutive quarters of increases. And still, the 38 percent discount 495 West space offers over 128 West is the greatest gap between the two since 2001, the firm said. For the quarter, Class A office space around I-495 leased for an average of $21.91 per square foot. Class A space around Route 128 West leased for $36.64 per square foot on average for the quarter.
And tenants have taken notice, especially in Framingham, where Class A vacancy is 3.5 percent vacant. For the quarter, Class A space was 16.9 percent vacant and Class B space was 24.1 percent around I-495. Two years ago, Class A vacancy was 27.2 percent.
In greater Boston in general, the market for Class A office space tightened to 10.1 percent vacancy, down from 18.3 percent vacancy three years ago. And average lease rates for Class A space dropped slightly to $40.12 per square foot.
According to RBJ, average lease rates for Class A space around I-495 showed a slight pullback in the first quarter, but that pullback comes after seven consecutive quarters of increases. And still, the 38 percent discount 495 West space offers over 128 West is the greatest gap between the two since 2001, the firm said. For the quarter, Class A office space around I-495 leased for an average of $21.91 per square foot. Class A space around Route 128 West leased for $36.64 per square foot on average for the quarter.
And tenants have taken notice, especially in Framingham, where Class A vacancy is 3.5 percent vacant. For the quarter, Class A space was 16.9 percent vacant and Class B space was 24.1 percent around I-495. Two years ago, Class A vacancy was 27.2 percent.
In greater Boston in general, the market for Class A office space tightened to 10.1 percent vacancy, down from 18.3 percent vacancy three years ago. And average lease rates for Class A space dropped slightly to $40.12 per square foot.
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