Office vacancies rise, rents drop in Fitchburg & Marlborough
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Noble Engineering leased 79,129 square feet of office space at 123 Felton St. in Marlborough last spring.
Looking to relocate or expand your office? Check out Marlborough and Fitchburg.
New data from CoStar Group, the global real estate tracker, shows those two cities saw vacancies rise in the third quarter while rents dipped.
The bigger bargains are in Fitchburg. As the office vacancy rate in the 1.3 million square foot market more than doubled to 6.5% from July through September, rents fell to $11.84 per square foot, down from $13.77 last year, a 14% drop.
Scott Simpson, an agent at Century 21 North East in Leominster, said dilapidated office buildings in downtown Fitchburg are fueling vacancies and reducing rents.
“I am seeing lots of of tenants looking, but many of the buildings in the downtown are run down and in need of TLC,” Simpson said. “Landlords need to step up. Buildings are priced so cheaply, people are buying them rather than lease office or retail space.”
Year-to date, a dozen commercial properties have sold in Fitchburg at a median price of $136,000 according to the MLS Property Information Network, the Shrewsbury listing firm.
Properties sold this year range from a 1,596-square-foot shop on Market Street for $29,000 to $250,000 for a 2,040-square-foot space on Market Street.
During the same period last year, 11 commercial properties sold with a median price of $150,000.
In Marlborough, the story is similar.
The vacancy rate increased by one percentage point to 12.8% in the third quarter. During the same time, rents were down slightly to $19.15 compared to $20 last year.
Kevin Brawley, a vice president at Colliers International in Boston, said since two major lease deals were completed this year for laser manufacturer IPG Photonics on Simarano Drive and manufacturing equipment supplier Doble Engineering on Felton Street, it’s been quiet.
“Landlords who have good office space that have put money into amenities have done well,” Brawley said. “But the others who have not, has caused rents to slide.”
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It's Doble Engineering and not Noble Engineering leasing the building at 123 Felton Street in Marlborough.
It's Doble Engineering and not Noble Engineering that is leasing the space at 123 Felton Street in Marlboro.
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