Spotlight on Business in Boston
The city of Boston has histrorically had a reputation for its international ports and its textile manufacturing industry. Manufacturing in general has dropped in the US over the years, however while the textile manufacturing industry still remains very strong in Boston, other industries have become more dominant in the last 20 years, and Boston continues to be a viable economic center that is still experiencing growth.
Major Industries in Boston
The economy in Boston has seen a shift away from textile manufacturing and more towards technology manufacturing and service industry jobs. The major industries in Boston can be broken down into the urban industries and the suburban industries. In the city of Boston itself, the primary industries are finance and professional services. The city also contains much of Boston’s technology manufacturing as well.
The suburban areas of Boston rely primarily on technology manufacturing and national defense. The outlying areas of Boston are populated with a wide variety of skilled technical workers and military bases.
Key Economic Drivers in Boston
Two of the key economic drivers for the city of Boston are tourism and medical research. Boston ranks 10th among United States cities for domestic and international tourism. This helps to drive the hospitality and food service industries.
The increase in medical research in the United States is also driving the Boston economy. The presence of significant medical colleges and universities in the Boston area have helped to shine a bright spotlight on Boston’s medical research sector. This is a part of the economy that continues to grow and continues to bring in more financial opportunities.
Office Rental Statistics for the City of Boston
The office rental business in Boston has been booming since 2008. One of the interesting statistics to note when it comes to Boston office space is the 150 percent increase in rental rates over the past six years.
In 2013, the vacancy rate for Boston office space was only 12.4 percent. That number is a drop from the 14.5 percent vacancy rate that Boston experienced in 2012.
Nearly 80 percent of all Boston office space is located in the areas of Back Bay, the Financial District and Seaport submarkets.
Cheapest Boston Office Rentals
In Boston, the least expensive office spaces are Class B spaces that rent from $25 to $45 per square foot, the majority of which are located within the Seaport districts of Boston.
Most Expensive Boston Office Rentals
The Class A High Rise office spaces in Boston carry the most expensive rental price tag at $55 to $75 per square foot. The Back Bay area is home to some of these high rise areas, where the vacancy rate in the Back Bay area is only 8.9 percent. Other Class A High Rise properties are located in the Financial District, with the Financial District carrying a higher vacancy rate of 15.3 percent for its Class A properties.
For further information on office space availability in Boston click here.
Resources:
http://www.city-data.com/us-cities/The-Northeast/Boston-Economy.html
http://www.bostonofficespaces.com/boston-office-leasing-trends
http://www.colliersmg.com/pdfs/Research/viewpoint_Q2_13.pdf
