Predictions a few years ago all pointed to the decline of the office market, stating the reshaping of the American workplace and dramatic technological changes as the main causes.
However, the exact opposite seems to be occurring as office vacancies hit record lows and overtake the last office peak that was reached in 2001.
The total amount of office space leased in Greater Boston is at its highest level ever, keeping the city above average compared to the rest of the country, according to Banker and Tradesman.
Nationally, the office market occupancy rate is in the mid-80s and continuing to rise. In Boston the market is nearing 90% and rising quarterly.
Boston is around 10 million square feet above the last highest mark, and this is only set to increase as another 3.3 million square feet of new office towers and buildings are being constructed over the next few years. Even those spaces that aren’t open yet are around 60% leased already.
The prediction just a few years ago was bleak for American office space, with experts describing the demise and major shifts in the market.
They were right about the shift in the office market, however the shift has proved to be more positive than negative.
Office layout and the types of office spaces companies are interested in has shifted significantly, as well as the technologies and needs that these companies are making use of. However, these shifts have not led to a decline in the market.
Tech companies, startups, labs and more are all contributing to this boom, especially in Boston with no sign of slowing down anytime soon.Tags: Boston Office Space, Office Rental Market