Home > Press Releases > RBJ: Greater Boston Office Market Shows High Levels of Demand and Development

RBJ: Greater Boston Office Market Shows High Levels of Demand and Development

Findings from Richards Barry Joyce & Partners’ Newly Published officeSTATus – Fall 2013

BOSTON – October 9, 2013 – Strong demand and high levels of development were the hallmarks of Greater Boston’s office market during the recently completed third quarter, according to a new research publication from Richards Barry Joyce & Partners: officeSTATus – Fall 2013.

Across Greater Boston, the overall vacancy rate dropped to 13.8 percent on 1.4 million square feet of absorption, the greatest quarterly absorption rate in six years. The market also posted the highest 12-month absorption rate (3.0 million square feet) of the past five years. Notably, more than 7.0 million square feet of commercial office space has either opened during the past year, is currently under construction or will begin construction this quarter (based on in-place commitments).

Brendan Carroll, Sr. Vice President

Brendan Carroll, Sr. Vice President

“Greater Boston’s total of in-place development is unmatched by the private sector anywhere else in the nation,” said Brendan Carroll, senior vice president, Richards Barry Joyce & Partners. “And demand isn’t concentrated in a few pockets. We’re seeing robust demand in almost all markets in the region, which is a great sign of a strong market.”

The third quarter also saw Boston’s occupancy hit its highest level ever – 63.5 million square feet – which is 5.0 million square feet more than during the “tech boom” in 2000. The Route 128 submarket has now had positive absorption during 13 of the last 14 quarters, while rents in the Interstate 495 North submarket have risen to their highest point since 2009.

A timely “Market Interesting” section in this quarter’s report looks at the commercial real estate projects completed during the terms of the past four mayors. Perhaps surprisingly, Mayor Thomas Menino did not preside over the most growth in the city.

About officeSTATus
One of the market’s leading sources for accurate statistics and insightful analysis, “officeSTATus is designed to deliver practical information in a convenient format to enable better decision-making.  Highlights of the quarter are presented on the report’s front page. The “Economy & Real Estate” section places the quarterly results within a broader context of the overall economy, while also discussing a range of related economic indicators and results. Each of Greater Boston’s submarkets – Boston CBD, Cambridge, Route 128 and I-495 – has a page dedicated to results in that area and include an interesting “Fact” about the region.

The final page is comprised of a valuable resource – a single chart with all the pertinent market statistics (vacancy, market size, absorption, availability and construction data) with historical data.

To request a copy of “officeSTATus – Fall 2013,” please send an email to research@rbjrealestate.com.

RBJ&P Research Publications
In addition to officeSTATus, RBJ&P publishes nine other quarterly research reports: indSTATus, which focuses on industrial property types (manufacturing, warehouse and flex buildings) and individual marketSTATus reports on eight crucial submarkets.  The firm’s biotechnology-focused report, bioSTATus, is released twice a year.  In total, the firm produces an industry-leading 42 reports per year, in addition to custom research projects for clients.

About Richards Barry Joyce & Partners, LLC
Richards Barry Joyce & Partners is a full service commercial real estate firm providing creative solutions for its client partners. The company’s focused team approach offers clients a competitive advantage in solving their local, national, and international real estate challenges. Richards Barry Joyce & Partners’ unique platform offers a full range of real estate advisory services including market analysis, capital markets solutions, financial analysis, corporate services, portfolio review, and consulting services.  For more information, please visit our website at www.rbjrealestate.com.  Follow us on Twitter at @RBJ_Partners.

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Editor’s Note: On September 9, 2013, Houston-based Transwestern announced the acquisition of Richards Barry Joyce & Partners. Richards Barry Joyce & Partners will begin operating as Transwestern RBJ on Nov. 1, 2013.

 

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