According to a new report from Transwestern, the Greater Boston office market -- which had a slow start to the year -- closed the second quarter in positive territory.
The market had 12.7 percent vacancy on 209,000 square feet of positive absorption, while the average asking lease rate increased 55 cents to $42.50 per square foot, a new high since 2002.
"It's a very good thing to see the market pick up quarter-over-quarter, but we'll be more interested to look at the results over the course of a year or even longer," said Northeast Research Director Chase Bourdelaise. "That frame of reference provides a more accurate view of the market and puts the relatively slow first quarter into better perspective. We anticipate the positive results to continue, based on the construction pipeline and a few large leases likely to commence soon."
Boston Q2, 2016 office market highlights include:
At 12.7 percent, the market-wide vacancy rate has remained under 13 percent for seven consecutive quarters.
Vacancy in Boston's Central Business District rose by 0.6 percentage points to 9.7 percent, while Class A asking lease rates held steady at $54.49 per square foot.
Average Class A asking lease rates in the Seaport District hit the highest recorded level at $57.44 per square foot.
In Cambridge, 37,000 square feet of positive absorption pushed vacancy down to 3.2 percent.
Class A average asking lease rates in Cambridge are $62.94 per square foot and hit the low $80s in East Cambridge, while the 2 million-square-foot Mid Cambridge market has only 3,000 square feet of office vacancy.
In the suburbs, vacancy and average asking lease rates remained steady at 13 percent and $30.80 per square foot along Route 128 and 21.8 percent and $21.26 per square foot along Interstate 495.
The 1.6 million square feet under construction in Route 128 West is the highest amount in that market since 1998.
Based on new data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending May 3, 2019, mortgage applications in the U.S. increased 2.7 percent from one week earlier.
A total of 161,875 U.S. properties with a foreclosure filing during the first quarter of 2019, down 23 percent from the previous quarter and down 15 percent from a year ago to the lowest level since Q1 2008.
According to the latest National Association of Home Builders/Wells Fargo Housing Market Index, U.S. builder confidence in the market for newly-built single-family homes held steady at 62 in March 2019.