Suburban Office Vacancy To Hit 20% This Year
Vacancy among office and research and development space along Interstate 495 hit 23.7 percent during the first quarter, according to a market report from Boston commercial real estate firm Colliers Meredith & Grew.
The vacancy rate for suburban Boston overall was 19.1 percent during the quarter. Worcester's vacancy rate was 11.5 percent.
Colliers said it expects the vacancy rate for suburban Boston to top 20 percent this year as 1 million square feet of new construction hits the market in the next 12 to 18 months.
Rental rates have softened and hovered around $18 per square foot along I-495 during the quarter. On average, current lease agreements are being executed on rental rates 10 to 15 percent less than a year ago as landlords become aggressive in securing tenants to ward off vacancy and tenants take the opportunity to secure favorable lease rates.
WBJ Web Partners
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