BOSTON – The office market in greater Boston had robust growth during the first half of 2017, according to a new report by Toronto-based Avison Young.
Some of the trends identified by the firm include the “GE effect,” in which the relocation of General Electric’s headquarters to the Fort Point area, a $200 million campus it’s calling Innovation Point, is attracting other influential companies to move nearby. Software-development company Red Hat Inc. has moved into 40,000 square feet at 300 A St., while Amazon.com Inc. has committed to a large footprint at 253 Summer St., according to Avison Young.
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“The GE effect is now coming to fruition as notable market entrants commit to areas near Innovation Point,” said Michael Smith, Avison Young’s principal and managing director of its Boston offices.
The greater Boston market, including city and suburban submarkets, is expected to add more than 3 million square feet of office space in the next two years, the report stated.
Overall asking rents increased to a historical high of $36.41 per square-foot through the second quarter of 2017. Between mid-2016 and mid-2017, greater Boston’s office market absorbed 2 million square feet of office space, including 1.6 million square feet in Cambridge and its suburbs.
Mary MacDonald is a PBN staff writer. Contact her at macdonald@pbn.com or follow on Twitter at MaryF_MacDonald.
