Boston office vacancy rate down to 8%

The fourth-quarter vacancy rate for the Boston office market dropped to 8 percent, the lowest it's been since the second quarter of 2001.

That's according to a report issued today by the New England office of CB Richard Ellis, an international estate services firm with headquarters in California. The report noted the vacancy rate in the fourth quarter of 2005 was over 11 percent.

The Boston office market ended 2006 on an encouraging note, the report said, with average asking rents increasing to $39.78 per square foot, up 14.3 percent from the beginning of 2006.

With a limited supply of new office space, "the pendulum has clearly swung to the landlord's favor," the report said.
(By Chris Reidy, Globe staff)