Cushman & Wakefield’s Q3 2023 report on Boston’s real estate market reveals significant trends. The industrial sector experienced a 3.9% increase in average asking rent quarter over quarter, reaching over $15.00 per square foot (NNN). Leasing activity saw an impressive growth of 11%, while renewal activity surged by 37.2%. Net absorption also showed notable growth, increasing by 86.9%.
In the life science market, leasing activity rose by a remarkable 31.2% quarter over quarter due to several large deals being signed; however, overall vacancy increased to16 .9%. In the office market, overall vacancy rose significantly to15 .6%, mainly driven by downtown submarkets with a rise of260 basis points.Leasing activity decreasedby29 .9% for the quarter with Financial District dominating downtown leasing.
These trends reflect the changing dynamics and challenges in Boston’s real estate landscape particularly in its office market where there has been a noticeable increase in vacancy rates.
The article “Boston Warehouse and Life Science Leasing Remain Strong during Q3” was originally published on Connect CRE.
