Boston Office Space Price Per Square Foot
Before looking in earnest for office space anywhere in the city, it helps to have a general idea for the current going rate of such real estate. As you are likely already aware, office space in Boston is among the priciest in the country – and lease prices continue to climb from one quarter to the next. In particular, new records were reached across many submarkets during the third quarter of 2019. Things downshifted a bit during the last quarter of that year in terms of demand, but lease prices still managed to increase – and it appears that they will continue doing so well into 2020.
First, let’s look at quarter three of 2019. The average cost per square foot at that time for office space across the city as a whole stood at $66.04, which represented a 2.3-percent increase from the previous quarter. It also represented a staggering 8.7-percent year-over-year increase from the third quarter of 2018. During the third quarter of 2019, overall availability of such space fell from 13.7 percent to 13 percent. However, this trend stabilized during the final quarter of the year – but that doesn’t mean that lease prices did too. In fact, they continued to climb.
The third quarter of 2019 represented the strongest period of growth for the office space market in the city in two decades, so it should come as no surprise that the next quarter didn’t beat that record so quickly. However, as noted before, lease prices across the city continued to rise. For example, the overall cost per square foot for office space across the city as a whole rose to $67.41 per square foot. With around 5.1 million square feet of additional space under development, many analysts believe that the ongoing trend of increasing lease prices may finally start tapering off in 2020.
Here’s how neighborhoods stacked up:
- Fenway/Kenmore -- $63 per SF
- North Station/Waterfront -- $71.35 per SF overall, $95 per SF for Class A
- Midtown -- $48.83 per SF
- South Station -- $57.03 per SF
- Charlestown/East Boston -- $48.72 per SF
- Dorchester/South Boston -- $54.90 per SF
- Allston/Brighton -- $39.29 per SF
Now that you have a general idea about the going rate for office space in various Boston neighborhoods, you probably have a better idea about where to focus your search. It also helps to know whether you want high-end, Class A space or more affordable options.
From there, sign up with Boston City Properties to easily search for commercial real estate properties with leases that fall into your desired range in terms of price per square foot. Without question, our service offers the easiest way to identify suitable office space in Boston – and it doesn’t cost a thing. Furthermore, we can connect you with experienced commercial real estate agents in any neighborhood in the city, and they can help you to pinpoint properties that suit your needs not only in terms of price but in terms of amenities and features too. For more information, give us a call today.