Boston office vacancy rate declines

The vacancy rate for the Boston office market fell below 8 percent for the first time in six years in the first quarter of 2007, with asking rents on the rise, according to a new report.

The report was compiled by the local office of CB Richard Ellis Group, a Los Angeles-based real estate company, and the report said that a combination of steady tenant demand and the absence of new supply meant that the Boston office market continued to strengthen in early 2007.

As a result of the improved market conditions, average asking rents in the first quarter of 2007 have increased by 8.5 percent over the previous quarter and by 21.3 percent from the same period a year ago, CB Richard Ellis said.
(By Chris Reidy, Globe staff)