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Boston Office Activity Slows But Vacancy Continues Decline
After a record-setting third quarter with more than 1.1 million square feet of absorption, the Boston office market saw the pace of activity slow to 113,000 square feet of positive absorption in Q4, CBRE says.
Vacancy continued to decline, dropping 20 basis points to 6.7%, while availability increased to 13.7%, a result of new supply being added to the market. Activity was driven predominately by lease expirations and less by growth-driven needs or out-of-market tenants looking to migrate downtown.
Currently, Boston’s CBD has 5.1 million square feet of new construction underway, with almost four million square feet set to be delivered between 2021 and 2023, and another five million square feet shovel-ready or in the planning stages, says CBRE.
In the suburbs, CBRE says the office market saw 203,490 square feet of positive absorption in Q4, with considerable growth in the Metro West and South markets.
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