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Boston’s Tech and Life Science Tenants Would Rather Sign New Leases
Tenants in Boston’s tech and life sciences sectors are more likely to sign new leases than renew, JLL reported.
In 2019, occupiers in these sectors signed new leases or relocations at rates of 88% and 66%, respectively. That’s a substantially higher rate than that of finance, business services, and legal firms, which make up the bulk of the remaining demand in Boston’s CBD, says JLL.
Among spaces of 15,000 square feet or less, technology and healthcare firms now lease up 41% of all available options, up from just 25% in 2015, JLL reported.
Meanwhile, renewals/expansions by existing occupiers have declined steadily in the past five years, with 138 such deals in 2015 compared to just 87 in 2019.
The falling number of tenants staying put occurs when Class A tenant allowance packages for renewals are well below those for relocations, says JLL. Base rents for renewing tenants are 5% higher.
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