As we enter the latter half of 2014, the second quarter ended with Boston delivering its fourth straight quarter of positive absorption with 482,542 square feet absorbed in the CBD. Many suburban firms are taking advantage of opportunities in Downtown Boston while rents are still somewhat in the tenant’s favor as many Financial District staples move to the Seaport. Meanwhile, traditional startups are turning their attention away from Cambridge and the Seaport due to higher rental rates or lack of options and are instead opting for space in the Financial District where rents are averaging $48.70 per square foot and availability rates are at 14%. The average asking rates across all office classes in the CBD is $45.80 per square foot with vacancy at 8.4%. Class A rents show the greatest fluctuation with some towers commanding upwards of $80 per square foot. On average though, a tenant can expect to see rents at $51.02 per square foot for Class A space.
Source : DTZ (Groupe UGL)