Quarterly performances were mixed across I-495’s submarkets with the net result leading to just over 186,000 square feet of net positive quarterly absorption which lowered the average vacancy rate 20 basis points to 14.9%. Generally speaking there are specific micro markets within I-495’s submarkets which tend to outperform market averages. More specifically buildings must be well located along major roadways with easy access to highways and strategic interchanges. The Route 3 North corridor, which houses some of I-495’s premier technology & defense tenants, recorded strong quarterly activity in Bedford and Billerica.
The forecast for the Interstate 495 market remains bright particularly as interior suburban locations become more congested and expensive. Across the board, tenants are more real estate conscience than ever before and face the challenge of keeping costs in check while cultivating corporate culture that retains and attracts top talent.