Boston’s tech and healthcare firms are much more likely to be signing new leases than renewing
In 2019, healthcare (primarily life sciences and biotechnology) and technology occupiers signed new leases or relocations at rates of 88 and 66 percent, respectively.
March 02, 2020
- This was at a substantially higher rate than that of finance, business services, and legal firms whom make up the bulk of the remaining demand in Boston CBD.
- Renewals/expansions by existing occupiers have declined steadily since 2015, when there was 138 such cases in Boston CBD. In 2019 there were only 87.
- The falling number of tenants staying in place comes at a time when Class A tenant allowance packages for renewals are well below those for relocations while base rents for renewing tenants were 5 percent higher than those for tenants moving into new spaces
- In spaces of 15,000 SF or less, technology and healthcare firms now lease up 41% of all available spaces, up from just 25% in 2015.
Source: JLL Research