Office availability saw a 3.0% increase, ending the quarter at 10.8% due to several large spaces
that hit the sublease market late in the quarter. Vacancy saw a slight increase as well, jumping to 5.4%. Absorption was negative, at nearly 430,000 sq. ft., which was mostly due to the large subleases that hit the market in East Cambridge, which increased the availability in the prime submarket up to 10.4%. Asking rents in Cambridge declined 1.3%, down from last quarter to $80.70 per sq. ft (gross), but are still up 1.5% from this same time last year.
Demand for lab space in Cambridge has not softened during the COVID-19 pandemic. The life science market saw the least number of requirements paused as a result of COVID-19, compared to any other sector. At the beginning of 2020 there were 1.4M sq. ft. of requirements for urban lab space, and by the end of the second quarter that number had increased to over 1.9M sq. ft. Vacancy stayed flat compared to last quarter at 2.6%. Availability decreased by 30 basis points (bps) to 6.6%.