Boston Lands Among Top 3 Office Markets in Q2



Boston had the third-strongest office space absorption in the U.S. during the second quarter, reflecting e-commerce firm Wayfair’s big expansion in Back Bay and continued growth of the coworking sector.

The Hub trailed only San Francisco and Manhattan in positive absorption among the 10 largest office markets, according to research released this week by Colliers International.

Buoyed by Wayfair’s 400,000-square-foot lease at 222 Berkeley/500 Boylston St., Boston had 410,000 square feet of positive absorption. Average asking rents rose 2.4 percent to $57.34 per square foot, leading all markets except San Francisco and Manhattan.

Wayfair is reportedly scouting properties for an additional 750,000 square feet of office space for expansion. Its recent lease in Back Bay has helped bring neighborhood’s class A vacancy rate, which stood at nearly 15 percent in 2016, to the current 6.3 percent.

Back Bay also has the city’s highest asking rents at $64.25 per square foot, topping $61.65 in the Seaport District.

No let-up in Boston leasing activity is evident. Verizon leased 439,000 square feet in late July at The Hub On Causeway office tower for a relocation of its East Coast Innovation Center from Waltham.

And Colliers said it’s tracking 225 requirements for approximately 6 million square feet of additional office space in Boston.

The Colliers report encompasses the core Boston office markets including Back Bay, the Financial District, Charlestown, Crosstown, Fenway/Kenmore, South Station, North Station and the Seaport.



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Boston Lands Among Top 3 Office Markets in Q2

by Steve Adams time to read: 1 min
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