Insight Report 2020 Market
Downtown Boston
2020 Market Insight Report
Winter/Spring ‘20 Winter/Spring 2020 Market Insight Report 1 Downtown Boston Market Overview
Market Size Vacancy Sublease Available 61,225,985 SF 7.1% 1.8% 10.9%
Arrows Indicate One Year Change
Trends The Big Picture Year over year, overall vacancy in Downtown Boston is down 2%, and overall rents are up 11.2%. Most notably, the Seaport saw a $7.30/SF rent increase from Q3 2019.
Static Noise Vacancy rates in all submarkets remained relatively static from Q3 2019.
Can’t Stop, Won’t Stop Market supply constraint continues despite Please edit/update itemsthe nearlyin red. 15 Also,million confirmsquare feet previous in the quarters numbers. Graph below will update development pipeline. automatically. Lobby at 100 Federal Street | Photo Source: Cresa/Duncan Lake Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 3 Rent ($/SF) $56.00 $56.02 $ 56.01 $ 56.94 $ 56.94 $ 55.97 $ 57.38 $ 61.45 $ 61.26 $ 62.92 $ 66.02 $ 68.37 Rent and Coworking Corner VacancyHistorical Chart Vacancy (%) Rent10.6% & Vacancy10.3% 10.4% 9.8% 9.8% 7.8% 8.4% 9.1% 8.0% 7.2% 6.8% 7.1%
Rent ($/SF) Vacancy (%) Approximately 60% of WeWork’s Boston portfolio is true coworking space, while the remaining 40% $70.00 11.0%11.0% is their HQ/custom product. WeWork is no longer actively seeking to lease any new office space in Boston as a result of their failed IPO and recent subsequent employee layoffs. $65.00 8.3%8.3%
WeWork $60.00 5.5%5.5% 1.5M SF Regus: 345K SF CIC: 168K SF Industrious: 120K SF
BXP Flex: 90K SF $55.00 2.8%2.8% Convene: 45K SF Knotel: 39K SF Boston Offices: 36K SF $50.00 0.0%0.0% The Yard: 33K SF Q1Q1 2017 Q2 Q3Q3 2017 Q4 Q1Q1 2018 Q2 Q3Q3 2018 Q4 Q1Q1 2019 Q2 Q3Q3 2019 Q4 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 WorkBar: 20K SF
Winter/Spring 2020 Market Insight Report 2