In like a lion, out like a lion is an accurate summary of commercial real estate activity we saw in Q4 2015. In our new Q4 2015 market report our Director of Research, Liz Berthelette, analyzed trends and data in office, industrial and life science markets. Due to strong employment gains, corporate relocations and expansions, and increasing capital flows to the area, the Greater Boston office market ended 2015 on a positive note. Our report for this quarter focuses on key takeaways from this growth including:
- Positive absorption, strong leasing and rising rents can be found across all property types.
- While a reshuffling of tenants resulted in negative absorption in a handful of downtown submarkets, there are few large blocks of space available. Look for vacancies to decline further in the near term as committed space becomes occupied.
- The Cambridge lab market is tighter than ever. Tenants looking for space, particularly in East Cambridge, will continue to face limited availabilities.
- Industrial market conditions are favorable as well, with owner-user sales and build-to-suit construction bolstering activity.
The Greater Boston industrial market roared to life at the end of 2015 helped by the region’s healthy, diverse economy. Looking forward, modern industrial facilities will remain in high demand with increasing rental rates, while older buildings will be considered for redevelopment. Dive into this and other big trends in our Q4 2015 market report. You can view the full report here.