- The Boston metro posted three consecutive quarters of positive net absorption for a grand total of almost 2.9 million square feet.
- The metro’s availability rate (15.6%) is at its lowest level in more than a year.
- Life science conversion activity is having a positive impact on fundamentals across the metro.
In the city of Boston, the office market recovery lost some momentum in the first quarter of 2022. Total Availabilities ended the quarter at 14.2%, compared to the 2021 year-end 14% level. Despite some backtracking, absorption over past year is better than the average pace of absorption of the five years leading up to the pandemic. With more than four million square feet worth of tenants seeking space in the market, there will be opportunities to fill empty space and keep the recovery moving forward.
Occupancies improved in both Cambridge and the Suburbs during the first quarter of 2022. In the Suburbs, Class A and Class B availabilities both ended the period at 17.5%, marking an improvement from their year-end levels. In Cambridge, with fundamentals superior to those in the Suburbs, the 7.3% availability rate is notably below its long-term historical average.