Colliers International Boston’s Second Quarter Market Viewpoint including commentary on the greater Boston office and R&D markets as well as notable sales transactions and a “Spotlight on the Economy” focusing on the Massachusetts job market.
- The downtown Boston market hit a speed bump in Q2, posting nearly 500,000 SF of negative absorption during the quarter, the first time absorption has been in the red in two years. The Financial District was the hardest hit, with Goodwin Procter’s well-known departure from 53 State Street the largest contributor.
- The Cambridge office market remains white-hot. Minor negative absorption was observed in the market in the second quarter, though that appears to be more frictional than anything. Vacancies remain near record lows, and both office and lab tenants of all sizes are finding options extremely limited, particularly in the Kendall Square/East Cambridge submarket.
- The suburban office market came back to life in the second quarter after a slow start to the year. Submarket results differed, but thanks to strong absorption in the 128 North and 495 North submarkets, overall absorption clocked in at 239,000 SF.