Office Construction Continued, While Vacancy Rose Slightly In Seaport District

The continuance of cranes over Boston’s Innovation District grew, with the News of GE choosing it’s New HQ in the Seaport, while vacancy rates saw a slight rise over the previous quarter. According to the Latest Report from

Encompass Real Estate Strategy

, Vacancy rose to 7.5 percent from 7.1 percent on 37,000 sf of negative absorption, while lease rates for existing Class A and B properties remained near previous quarter levels.

◊ A feverish recent pace of absorption activity was interrupted in the quarter as building completions and lease commitments in coming quarters will likely resume strong absorption in coming quarters.

◊ Fifty-six percent of existing vacant Seaport space is Class B space in the Marine Industrial Park; just 25 percent is in technology-dominated Fort Point.

◊ No existing Class A space is available for users 50,000 sf and larger; just three Class B choices await such users, though options open up considerably for users smaller than 20,000 sf.

◊ Stated asking lease rates have remained stagnant for several quarters, though increasing pressure is being placed on incentives, such as tenant improvement allowances, free rents and other items.

You can view the full Seaport Report from Encompass Real Estate Strategy HERE