Boston Mid-Year 2019 Market Report
Groundbreakings are the talk of the Boston market for the better part of the 2nd quarter. Boston has seen +/- 2 million SF of construction starts including Amazon, MassMutual, 321 Harrison, and State Street’s One Congress.
Rents reached an all-time high with $100+/SF gross rents being achieved in Back Bay. Rents in the Financial District leaped from the mid $60s to $80s virtually overnight with annual $1.00/SF rent bumps being replaced with escalations of 2.0-3.0%. The Seaport continues to be a strong alternative for life science tenants priced out of Kendall Square with Tishman Speyer and Bellco Capital teaming up to build an 8-story lab building on First Street in South Boston. Coworking expansion continues to be a significant driver of the Boston office market with WeWork, Knotel Inc., Workbar and Wing.