Rates Remained Stable While Absorption Continued Across All Class Assets Ending Q1July 06, 2018 - By The Real Reporter
BOSTON–Tenants absorbed 148,000 sf in the Back Bay area, ending the first quarter, 2018, as published in AW Perry’s Slate 2018.2 report. Tenant’s lease activity in the Back Bay area lowered the vacancy 1.0 percent to 8.6 percent, as average Class A asking rents remained stable at $68.64 per sf.
Online retailer, Wayfair has agreed to lease 395,000 sf across the adjacent 222 Berkeley and 500 Boylston Street assets. In the Seaport area, tenants absorbed 365,000 sf, dropping vacancy from 2.6 percent to 6.3 percent, while Class B asking lease rates rose 1.7 percent to $44.04 per sf.
Vacancy remained stable at 2.0 percent in the Cambridge area, despite 121,000 sf of negative absorption as average Class A asking lease rates increased 2.6 percent to $62.82 per sf. Boston real estate agency, Divcowest, will begin construction of a second 500,000 sf facility at Cambridge Crossing, following the leasing of a majority of the first building at 250 North Street by Phillips.
Amazon took occupancy of 150,000 sf at 253 Summer Street while also committing to occupy 444,000 sf in the facility to be developed by them by WS Development. In addition, Rebook opened its 222,000 sf headquarters facility at 25 Drydock Avenue. In the Core of Boston, vacancy increased 0.1 percent on slight negative absorption of 51,000 sf as average Class A asking lease rates increased 1.8 percent to $57.26 per sf. Technology tenants in the area have emerged, such as Spotify committing to 74,000 sf at Center Plaza, iBasis expanding to 45,000 sf at 101 Federal Street, and more. VIEW THE FULL REPORT HERE