Report: Local office market is holding steady

Leasing fundamentals for the Greater Boston office market were "sluggish but holding steady" during the first half of the year, according to a new report out today from Colliers Meredith & Grew, a Boston real estate services firm.

"Net absorption across all submarkets was just over 1 million square feet, compared to over 2.5 million square feet through the first six months of 2007," Colliers Meredith & Grew said in its report. "Despite the positive absorption, the addition of over a half million square feet of new supply has kept the vacancy rate unchanged since the fourth quarter 2007 at 14.3 percent."

The firm added: "Instability in the residential markets, inflationary concerns, and a still-tight credit market are causing some tenants to pause before executing transactions. Employment conditions in Greater Boston are generally positive, however, so that neither a drop-off in demand nor a significant amount of sublease activity - both early indicators of a negative turn for the office markets - have occurred."
(By Chris Reidy, Globe staff)