The Greater Boston suburban office market recorded 481,943 sq. ft. of negative absorption in
Q3 2020. The vacancy rate decreased by 40 basis points (bps) to 15.0% while availability increased by 20 bps to 19.9%. Sublease space continued to come to the market in Q3, resulting in the sublease rate seeing a 50 bps increase to 2.9%.
The suburban lab market has seen overall positive absorption the past three quarters, as demand continues for this asset class. Availability decreased to 11.5% while vacancy
remained flat at 9.0%. The sublease rate decreased by 20 bps quarter-over-quarter to 0.7% – the lowest rate seen in the market since Q4 2012. Strong demand and low vacancy rates continue to push rents up.