From Banker & Tradesman:
Net occupied space in Greater Boston’s office market shrank by 1.5 million square feet in the first quarter, marking the 7th consecutive quarter of increased vacancy, according to a new report.
Colliers Meredith & Grew reported 19.2 percent vacancy in the first quarter, up from 18.4 percent at the end of 2009, according to the First Quarter 2010 Market Snapshot.
“Although the pace of the market’s deterioration slowed over the latter half of 2009, the first quarter of 2010 has seen several large blocks of space coming to the market, thus continuing to drive vacancy rates upwards,” the report found.
In the Boston market, which spans from Fenway/Kenmore to Charlestown, vacancy rates were 14.7 percent. Space near South Station has the highest vacancy rate, at 25.7 percent.
In the suburban market, which includes Routes 128 and 495 and Worcester, vacancy rates were 21.8 percent.
“Although the market appears to be bottoming out, conditions will remain challenging at least through the first half of 2010 or until the labor and financial