The future outlook for Boston, Massachusetts construction crews does not look bright as developers are struggling to fill the 6.7 million square feet of new office space that has hit the local market since 2004. According to the Boston Business Journal, about a third of that office space remains vacant, with certain developments and submarkets experiencing up to 70% vacancy rates for space constructed over the past seven years.
On the other hand, older facilities built between 1998 and 2003, which amount to around 24.6 million square feet of space added, have experience far better leasing activity. Those properties have a combined vacancy rate of only 14.3%, less than half that of the buildings built after 2004. Overall the greater-Boston office vacancy rate was at 16.5% this quarter compared to 15.9% at the end of 2010. The rise in vacancies can be credited to negative absorption of over 200,000 square feet of space.
To read the full article from the Boston Business Journal, click here.