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​​Boston BioBeat Q2 2024

Riley McMullan • 8/12/2024

Q2 2024 Key Highlights

  • Availability rates continued to rise for the seventh consecutive quarter, reaching a new all-time high of 28.7%—up 130 basis points (bps) quarter-over-quarter (QOQ). Cambridge and the Urban Core were the only two submarkets to record a decrease in availability, dropping down 50 bps and 130 bps to 20.9% and 29.1% QOQ, respectively. 

  • Year-to-date (YTD) construction completions were nearly double the project completions during the first half of 2023. With more than 2.8 million square feet (msf) still under construction and anticipated to deliver by year-end totaling 5.4 msf of deliveries for 2024, construction completions are expected to decline year-over-year (YOY), from 6.7 msf of deliveries in 2023. 

  • New demand in the second quarter totaled only 141,000 sf, marking a 54.5% decrease QOQ and the lowest leasing total since Q2 2020. For the second consecutive quarter, the Urban Ring recorded the highest quarterly new demand, followed closely by Cambridge at 58,408 sf and 51,846 sf, respectively.  

  • Despite direct asking rents decreasing for the second consecutive quarter, direct asking rates recorded an $8.62 per square foot (psf) premium compared to one year ago at $91.93 psf. 

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