News
BOSTON 'BURBS BOUNCING ON BOTTOM
September 21, 2011
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| The 234M SF suburban market is bouncing along the bottom, but tenants are more confident about the overall economy and have better balance sheets than a year or two ago, says Colliers International EVP Jim Elcock at his firm's annual suburban market event Thursday at the Newton Marriott. Despite a 21.4% vacancy rate, Jim tells us that the big companies that have weathered the storm are now looking to see if they can save money by leasing less space for fewer workers. |
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| Asking rents, down 20% since ?08, have been flat over the past 12 months. Broker Leeanne Rizzo says that in the prime Rt 128 market asking rents for Class-A offices are $30 to $35 SF.Ownership has been consolidating with deals like Boston Properties' purchase of Bay Colony. Now, seven landlords own nearly 40% of the Class-A office space north of the Pike, which translates into upward pressure on rents. Meanwhile, users wanting 120k SF plus have only five options. |
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| Todd Alexander, Tucker Hansen, Bill Lynch, Nick Herz, Brian Tisbert, and Leeanne covered everything from industrial to retail and labs. (They also blocked anyone from leaving by fortressing the exit.) On the critical new development issue, Leeanne says that since over the past three years there's evidence that tenants will pay a premium for new space, some development is a distinct possibility. The feasibility of any project hinges on a good price for land. For large property owners, look for them to start replacing a few old buildings, Jim tells us. |
