Greater Boston Market Viewpoint
GREATER BOSTON MARKET VIEWPOINT 3RD QUARTER 2014 Accelerating success. MARKET VIEWPOINT | Q3 2014 Boston Overview The vacancy rate in the 62.8-million-square-foot Boston office The largest third quarter leases represented Financial District market dropped to 11.1% during the third quarter, and nearly Class A buildings, with select transactions including: 800,000 square feet of positive absorption was recorded. The core Financial District and Back Bay submarkets were largely Tenant Address SF Submarket Financial responsible for the increased occupancy, with 522,000 and Sonos (n) Lafayette City Center 170,000 District 248,000 square feet of absorption, respectively. Financial CDM Smith (n) 75 State Street 170,000 While most of the smaller peripheral submarkets report single- District Financial State Street Bank (r) 100 Summer Street 167,000 digit vacancies, the vacancy rate in the Financial District is 13.1%, District a marked improvement from early 2011 when it topped 20%. Financial Choate Hall & Stewart (c) Two International Place 135,000 District Statistics in the core submarkets are as follows: Financial Jewish Vocational Service 101 Federal Street 42,200 District Supply Market Segment SF Available Vacancy Rate Financial Atlantic Trust 100 Federal Street 40,000 (SF) District Financial District – Class A 27,544,321 3,847,840 14.0% (n) = relocation from Cambridge (c) = contraction (r) = renewal Financial District – Class B 6,054,905 542,551 9.0% Back Bay – Class A 10,863,855 1,131,593 10.4% • The Financial District accounts for a slightly disproportionate Back Bay – Class B 2,030,085 311,428 15.3% share of the leasing activity thus far in 2014, with roughly 60 Seaport – Class A 3,067,295 209,696 6.8% percent of transaction velocity, compared to the Back Bay and Seaport – Class B 4,545,896 343,677 7.6% Seaport at 23 percent and 11 percent, respectively.
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