Boston Downtown Office MarketView Q1 2017
It was a relatively quiet first quarter for the Downtown Boston Office market, echoing a theme seen across many of the Greater Boston submarkets. Several large leases that were expected to be signed in the first quarter are still in the works, notably including Reebok’s new headquarters deal at 21-25 Drydock Avenue. Vacancy was up to 8.6%, the highest it has been in three years, but asking rents continued to edge upwards.
Bifurcation of Class A and B rental growth has slowed: while in the past year Class B properties had seen much greater gains in comparison to Class A, in Q1 2017, both saw only modest gains.