Cushman & Wakefield’s Q3 2023 report on Boston’s real estate markets reveals significant trends. The industrial sector experienced a 3.9% increase in the average asking rent, surpassing $15.00 per square foot (NNN) quarter over quarter (QoQ). Leasing activity also saw growth of 11%, while renewal activity surged by an impressive 37.2% QoQ. Additionally, net absorption showed a notable increase of 86.9%.
The life science market saw a substantial uptick in leasing activity with a rise of 31.2% QoQ due to several large deals being signed; however, overall vacancy increased by 250 basis points to reach16 .9%. In the office market, overall vacancy rose by120 basis points to hit15 .6%, primarily driven by downtown submarkets which experienced an even higher jump at260 basis points.Leasing activity for the quarter decreased significantlyby29 .9%, with the Financial District dominating downtown leasing.
These trends reflect evolving dynamics and challenges within Boston’s real estate landscape, particularly in its office market where there has been noticeable growth in vacancy rates.
The article “Boston Warehouse, Life Science Leasing Remains Strong in Q3” was originally published on Connect CRE.
