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Colliers Meredith & Grew is pleased to provide a copy of its Second Quarter 2009 Market Viewpoint, including commentary on trends and transactions in the metropolitan Boston real estate and capital markets. A section is included on each of the following: Boston, Cambridge, Suburbs, Investment Sales, and Capital Markets.
The overall vacancy rate in the greater Boston office and R&D markets increased two percentage points during the first half of 2009—from 15.6% to 17.6%—as 3.2 million square feet of negative absorption was recorded.
During the second quarter, the lone bright spot was the East Cambridge/Kendall Square submarket where 125,000 square feet of positive absorption was recorded, primarily due to Vertex Pharmaceuticals subleasing 143,000 square feet at 88 Sydney Street. Overall, declining rental rates abated slightly during the quarter, although the limited number of sizeable transactions on a direct basis are providing few pricing benchmarks. Depending on market segment, asking rents for office space have decreased by approximately 10 to 20% over the past eighteen months.
Please refer to the Investment Sales and Capital Markets sections of the report for insights and commentary on challenges and emerging trends in the real estate debt and equity markets. A widening differential between short- and long-term yields was noted during the first half of the year, although despite rising interest rates, spreads on whole mortgages have not risen in lockstep with the steepening yield curve. Rates are still low relative to historical standards and all eyes will be on the Fed and how it manages long-term rates over the second half of 2009.
Contact Mary Sullivan Kelly at 617.330.8059 for more information.
  viewpoint_q2_09.pdf
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