Financial and Seaport District rejuvenates Greater Boston’s office market

Financial and Seaport District’s office market is enjoying the strongest levels of demand since 2007, according real estate firm Richards Barry Joyce & Partners.

The level marks a five year high for the district in Greater Boston, following successive growth in the preceding six quarters.

The report shows approximately 2.6million sq ft of space changed hands in 2012, denoting a vacancy rate of 14.4%, well below the surrounding conurbations and national average.

Biotechnology research firms have contributed significantly to the strong levels of growth in the area, with vacancy rates for laboratory space even further, down below 10%.

Technology giants Google and Microsoft have expanded their premises in Cambridge, with online retailer Amazon set to complete negotiations on a further105,000 sq ft of space in Boston’s Kendall Square.

According to the report, the market is in the midst of six consecutive quarters of positive growth, with technology and life-sciences companies choosing Greater Boston as a base for operations.

Commenting on the report, RBJ president Bob Richards said: “It’s scary to think where the Greater Boston market would be without technology — including life sciences.

“If we were still operating as a non-headquarters, back-office market ... these numbers would be dramatically different.”

Boston’s Financial District has been providing good value for money for tenancy in low-rise properties, with the Seaport District proving lucrative in relocating Cambridge firms, accounting for 42% of the areas leasing activity combined.

In the suburban office markets, Burlington came out tops, overtaking the traditional favourite, Waltham, which saw its leasing activity more south.

“Suburban-minded tenants are really attracted to the amenity-rich environment that Burlington has become,” said Brendan Carroll, RBJ’s senior vice president of research.