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Boston Warehouse, Life Science Leasing Remains Strong in Q3
Cushman & Wakefield’s Q3 2023 report on Boston’s real estate markets reveals key trends. In the industrial sector, the average asking rent increased by 3.9% QoQ, surpassing $15.00 per square foot (NNN). Leasing activity grew by 11% from the previous quarter, but renewal activity surged by 37.2% QoQ. Net absorption was notably high, increasing by 86.9% QoQ.
The life science market witnessed a 31.2% uptick in leasing activity QoQ, with several large deals signed. However, overall vacancy rose by 250 basis points to 16.9%.In the office market, overall vacancy jumped by 120 basis points to 15.6%, driven mainly by downtown submarkets, which saw a 260-basis point increase. Leasing activity for the quarter decreased by 29.9%, with the Financial District dominating downtown leasing.
These trends reflect the evolving dynamics and challenges in Boston’s real estate landscape, especially in the office market, where vacancy rates have risen notably.
- ◦Lease
