The Boston office market recorded the second consecutive quarter of negative growth with almost 930,000 sq. ft. of negative absorption in the second quarter. Availability and vacancy both increased 110 basis points (bps) to 15.0% and 8.6% respectively, largely due to a spike in sublease space being added throughout the city. In Q2 there was more than 725,000 sq. ft. added to the sublease market, ending the quarter with more than 2.0 million sq. ft. of available sublease space.
In the second quarter the Downtown Boston lab market recorded almost 78,000 sq. ft. of positive absorption and asking rents grew by about 8% quarter-over- quarter to $82.36 NNN. Despite the strong demand, availability rose to 8.9% as the base of inventory in Boston continued to grow.