East Cambridge A Top Tech Submarket For Rent Growth
Among tech submarkets nationwide, East Cambridge enjoyed the third-fastest rent growth from Q2 2014 to Q2 2016, according to CBRE’s 2016 Tech-Thirty report. Rents were up more than 28% for the two-year period, a figure topped only by Oakland/East End in Pittsburgh and University City in Philadelphia.
Other takeaways in the report about Boston's tech industry: tech tenants in Cambridge and other suburbs are migrating to Downtown Boston, mainly for cost savings and recruiting; there's been an 11% increase in demand for tech space Downtown over the last 24 months. Also, tighter VC-lending requirements have created uncertainty about the future pace of local tech growth. VC-backed tech tenants are now focusing on the quickest path to profitability, rather than growth, which might put a damper on tech space absorption.
