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, surpassing $15.00 per square foot (NNN). Leasing activity grew by 11%, while renewal activity surged by an impressive 37.2%. Net absorption also saw a notable increase of 86.9%.
In the life science market, leasing activity increased by an impressive 31.2% quarter-over-quarter with several major deals signed; however, overall vacancy rose to16 .9%. In the office market, overall vacancy rose to15 .6%, mainly driven by downtown submarkets which saw a significant increase of260 basis points.
The Financial District dominated downtown leasing despite a decrease in leasing activity for the quarter at29 .9%.
These trends reflect the dynamic and challenging nature of Boston’s real estate landscape, particularly in its office market where there has been a noticeable rise in vacancy rates.
This article discusses strong warehouse and life science leasing numbers during Q3 without mentioning any specific company or organization names.
