NEGATIVE ABSORPTION DOESN’T TELL WHOLE STORY
Greater Boston’s suburban office and lab market encompasses over 125 million square feet and consists of eight major submarkets concentrated along Route 128 and Interstate 495. Immense pressure across the Boston and Cambridge markets has caused tenants to consider suburban locations for rent relief and future growth opportunities. Most recently, the demand for lab space has begun to gain significant momentum across the suburbs. Markets with existing critical mass including Waltham, Lexington and Watertown are the preferred locations.
Looking forward, strong regional macroeconomic indicators coupled with strengthening regional demographics have the Greater Boston suburban real estate market positioned for future growth. Over the next 12 months, watch as both investors and tenants acknowledge the growing spread between Downtown pricing and the suburbs and the market adjusts accordingly.