Commercial Real Estate Frontline

According to CoStar Research:

Boston has 2.3M SF in additional inventory in Q1 2009

Boston has 2.1M SF of negative net absorption by Q1 2009.

Note: Tenants are trying to hold out for a more tenant friendly marketplace. Companies are struggling to understand their direction and are delaying on space decisions. They also don’t want to pay for unamortized costs from improvements made for their leased space that are being written down. They are also hoping to hire back laid off staff. To boot, tenants are worried about image of sublet space making their business look weak in this environment.

Days on market for leasing risen from 166 days in 2005 to 474 in 2009.

Boston is the 6th largest office market in the country with 348 M SF.

Boston is reporting 11% vacancy rate.

The average office lease is $23.28/SF.