The Cambridge Office market maintained its unquestionable status as the premier office submarket in Greater Boston in Q1 2018. Vacancy fell to 3.8% market-wide, and availability finished at 11.9%. These types of numbers are to be expected, but average asking rents saw a major jump that put them on a new level—even by Cambridge standards. Due in large part to actively marketed new construction bringing an influx of premium space to the market, rents rose from $70.18 per sq. ft. in Q4 2017 to $80.52 per sq. ft. by the end of Q1 2018.
The story of the Cambridge Lab market in the first three months of 2018 should not come as a surprise. The market is as tight as ever, with no signs of changing. Demand remains in the stratosphere, with 2.4 million sq. ft. of active requirements, while only 161,000 sq. ft. are currently vacant. Largely bolstered by new projects under construction, 1.2 million sq. ft. is being marketed for future occupancy—still half the amount of demand.