Colliers International is pleased to provide a copy of its Fourth Quarter 2015 Greater Boston Market Viewpoint with statistics and commentary on the area's office and R&D markets. The report provides occupancy and absorption statistics for the Boston, Cambridge and Suburban Boston markets, and highlights recent lease transactions as well as sales in the investment markets, and highlights recent lease and investment sales transactions.
The 6.9 million square feet of net positive absorption represents the fifth consecutive year of positive absorption and the highest annual amount recorded since 2007. Results were positive across virtually all markets over the course of 2015, and the overall vacancy rate declined from 15.3% to 13.1%. In total, nearly 3 million square feet of new construction delivered in 2015 in both the urban and suburban markets.
- The Boston office market recorded over two million square feet of positive net absorption last year and an unprecedented seven million square feet for the five-year period ended December 31, 2015. Results were particularly strong in the low-rise segment of the tower market. Demand is solid: 850,000 square feet of new office product delivered during the year and another 2.3 million square feet is actively under construction at year-end.
- The Cambridge office and lab market is arguably the hottest commercial real estate markets in the country, with a sharp decline in the vacancy rate and skyrocketing rents. The positive net absorption of 1.8 million square feet is a historical high, surpassing last year's record 1.3 million square feet. Options in the lab market are extremely tight, as evidenced by the 3.0% vacancy rate.
- The suburban office and R&D markets recognized its sixth consecutive year of positive absorption, with nearly 3 million square feet of increased occupancy causing a drop in the vacancy rate from 18.4% to 16.5%. Nearly 1 million square feet of new office space was added to inventory during 2015, including build-to-suits for VistaPrint and Trip Advisor.