The Greater Boston office market saw positive absorption for the fourth quarter in a row, leading brokers to anticipate an active leasing year, according to CB Richard Ellis.
Boston, Cambridge and the suburbs all experienced increased leasing activity in the first quarter of 2011, for a total of 623,409 square feet of positive absorption, according to a CBRE report. That makes a total of 1.9 million square feet of positive absorption in the market over the last year.
While things are heading in the right direction and fundamentals are improving, the improvements are still uneven. The south market still trails the west and north markets, particularly the 128 West and North and Rt. 3 North, which have improved substantially over the last few quarters thanks to the flight to quality of Waltham, Burlington and Bedford, said Greg Halloran, director of research for CBRE in Boston.
"Since rents have fallen over the last few years, tenants have looked to upgrade, and activity has been the busiest in premium space with access to the best amenities," Halloran said.
CBRE’s brokers have seen increased tenant activity in the first quarter, even in markets where not a lot of transactions have closed, leading them to think this will be a year with renewed leasing actions, Halloran added.
The Greater Boston industrial market also saw 1.2 million square feet absorbed this quarter, a stark contrast from the 1 million square feet of negative absorption in the fourth quarter of 2010.
"The market has turned," Halloran said. "You’re starting to see the industrial market follow the improvements in the general economy and greater activity in distribution."





