Positive Annual Absorption Across Map
Greater Boston’s suburban office market encompasses over 107 million square feet and consists of eight major submarkets concentrated along Route 128 and Interstate 495, the major thoroughfares that surround the city of Boston. With immense pressure across the Boston and Cambridge markets, tenants have been increasingly evaluating suburban locations for rent relief and future growth opportunities.
As Greater Boston’s premier suburban market, the Route 128 loop has garnered global recognition for its proximity to urban markets, excellent infrastructure, distinguished tenant base and top quality assets. During the fourth quarter, leasing velocity ramped up following a sluggish third quarter which lowered the vacancy rate to 10.1%. Route 128 boasts some of the region’s largest corporations from healthcare and education firms to emerging technology and TAMI tenants.
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. Despite a slow fourth quarter, I-495’s annual absorption eclipsed 909,000 square feet which reduced the total vacancy rate to 14.6%.
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 for continued growth.