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Market barometer has Boston hot!

The Boston and San Francisco metropolitan areas are two significant markets whose outlook has been upgraded over the past six months, according to the Cushman & Wakefield Office Market Barometer. The Barometer is a forecasted ranking of a market's performance compared to other markets through fourth quarter 2005.

Overall absorption has inched into positive territory in both the Boston downtown and suburbs. With an overall vacancy of 14.1% and direct class A rental rates holding steady around $37.00 per square foot, the Boston downtown outlook ranks above both Washington, D.C. and New York over the next 18 months.

The San Francisco downtown also has fared surprisingly well. Overall vacancy is below the 20.0% threshold, and leasing activity has tallied more than 2.8 million square feet year-to-date, ranking only below Washington, D.C., Midtown Manhattan and Chicago.

"These markets are seeing growth from old-line industries such as investment banking and leftover dot-coms recently expanding in San Francisco," said Ms. Maria Sicola, senior managing director, national research services. "With the technology and financial services sector beginning to show signs of life, the employment outlook for both Boston and San Francisco are returning more in line with the national average."

Florida metropolitan areas continue to rank as the leading markets in the Barometer. Through mid-year, the Florida markets (Orlando, Palm Beach, Fort Lauderdale, Tampa, and Pinellas) have combined for a total of 2.5 million square feet of positive absorption, nearly one third of the total absorption across the country, and preliminary third quarter data are consistent with second quarter trends.

Northern Virginia remains the strongest performer among the suburban markets. The area has experienced more than 6 million square feet of leasing activity and 1.8 million square feet of positive absorption through mid-year, both of which rank first among suburban markets.
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Publication:Real Estate Weekly
Article Type:Brief Article
Geographic Code:1U9CA
Date:Oct 27, 2004
Words:304
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