During the third quarter of 2023, Boston’s commercial real estate market saw a rise in vacancy rates for the fourth consecutive period, according to Colliers’ Q3 2023 Boston Reports on Office, Multifamily and Industrial. This trend is attributed to investors acquiring assets at lower prices and an increase in available direct space. As a result, the office market in Boston is becoming more favorable for tenants.
On the other hand, the multifamily market remains strong with healthy vacancy rates and above-average rent growth compared to historical averages. These reports offer valuable insights into overall availability of properties as well as trends in market activity and investment patterns over time.
Despite these challenges, vacancies within the industrial sector have remained relatively stable at three percentage points below long-term averages. While there has been positive net absorption over the past year overall, warehouse space experienced some decline. Although landlords were unable to raise rents as aggressively as previous years due to these factors,the industrial asking rents still grew by approximately 2.5% during this time frame.
This article was originally published on Connect CRE.
