2/4/2014

Colliers International | Market Viewpoint

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2013 A Solid Year For Commercial Real Estate Markets

Colliers International is pleased to provide a copy of its Fourth Quarter 2013 Greater Boston Market Viewpoint with statistics and commentary on the area's office and R&D markets. The report provides occupancy and absorption statistics for the Boston, Cambridge and Suburban Boston markets, and highlights recent lease transactions as well as trends in the capital and investment markets. Net absorption for the year was positive at over 2.3 million square feet. The overall vacancy rate at year-end was 16.9%, down slightly from the fourth quarter 2012 rate of 17.2%. Net occupancy for the year increased across most submarkets as the construction completion of a number of office buildings in Boston, Cambridge and the suburbs contributed to the positive results. The fourth quarter represents the eleventh consecutive quarter of positive absorption in the Boston market, with approximately 1.4 million square feet of office space absorbed over the course of 2013, and a decline in the vacancy rate from 13.0% to 11.9%. Positive absorption in the Back Bay and Seaport was due in part to the completion of Liberty Mutuals headquarter building at 157 Berkeley Street and LogMeIns renovation of former brick-and-beam warehouse space at 320 Summer Street. The overall vacancy rate in the Cambridge market increased to 13.4% during the year, despite over 100,000 square feet of positive absorption. Although conditions in the office market are tight with single-digit vacancy rates, occupancy in the lab market contracted by nearly 600,000 square feet due in large part to the pending departure of Vertex Pharmaceuticals to Boston. The suburban vacancy rate declined slightly during 2013 from 20.0% to 19.8% with positive absorption of nearly 800,000 square feet. Companies such as Keurig in Burlington, RedHat in Westford, MathWorks in Natick, and PerkinElmer in Hopkinton represent some of the suburban expansions that occurred in 2013. Aggregate 2013 investment sale volume for Greater Boston was the highest level since 2007 Total volume increased by
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Download Viewpoint (2MB) Contact: Mary Sullivan Kelly mary.kelly@colliers.com +1 617 330 8059 Colliers International 160 Federal Street Boston, MA 02110

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Colliers International | Market Viewpoint

roughly 50%, from $4.5 billion in 2012 to $6.4 billion in 2013. Please refer to the Capital Markets section of the report for a summary of recent transactions. Please contact Mary Sullivan Kelly should you have questions. Thank you.

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