I-495 LEVERAGES MARKET POSITION
Interstate 495, the outer suburban belt, has traditionally served as the back office and corporate campus solution. However, as the eastern Massachusetts landscape has evolved and become more saturated, tenants are looking to I-495 locations for larger blocks of space as well as more economical solutions across all business sectors.
Quarterly performances were positive across nearly every I-495 submarket which lead to over 634,000 square feet of net quarterly absorption. Generally speaking, I-495 offers less volatility that its more urban suburban counterparts by historically maintaining a 12-18% vacancy rate with average rents in the high teens to mid $20’s for well positioned product.
The experience at suburban locations has become increasingly important to today’s tenants. That includes contemporary lobbies, vibrant common corridors and interactive indoor/outdoor amenities which complement and enhance tenant’s private work spaces. Looking forward, with strong regional macroeconomic indicators and one of the nation’s fastest growing population bases, the Greater Boston suburban real estate market is poised from continued growth.